Failure to close commodity contract before expiry date

I

iamvethalam

New Member
#1
#1
What are the options available to me if i fail to close the commodities contract before the expiry date?
Is there any option whereby i can avoid taking delivery of the commodity? :sos:
 
G

gnsrikanth1986

Member
#2
#2
if there are enough funds in your account, your position will be converted into delivery.
otherwise, Your position would be squared off on the expiry date at the prevailing market price.
I dont know completely about delivery. In effect, You can take delivery of any commodity in the market except crude oil I guess.(taking delivery of 100 barrels of crude is impractical I guess coz there are no mini or mic lots in crude.)
If the moderators could kindly shed some light on delivery in commodities market I would really appreciate it.
 
I

iamvethalam

New Member
#3
#3
gnsrikanth1986 said:
if there are enough funds in your account, your position will be converted into delivery.
otherwise, Your position would be squared off on the expiry date at the prevailing market price.
I dont know completely about delivery. In effect, You can take delivery of any commodity in the market except crude oil I guess.(taking delivery of 100 barrels of crude is impractical I guess coz there are no mini or mic lots in crude.)
If the moderators could kindly shed some light on delivery in commodities market I would really appreciate it.
Click to expand...
gnsrikanth1986,
what would be the case for a single lot of alumini? :confused:
i don't think there are enough funds in the account for the entire contract value, but more than sufficient funds for margin is available.
 
G

gnsrikanth1986

Member
#4
#4
@vethalam.

If the contract is expiring, even though you have the requisite margin amount in your account, Your position would be squared off regardless.
becoz when the contract expires, there cannot be any positions on it.
Its like taking a seat in a car when there is NO car.


you can however take the same position in another future contract.
brokerage and other standard charges apply.
 
P

prudent1

New Member
#6
#6
money management books

hi,
In Commodities many people got failures. And in this sector people learn with experience . Failures are part of life.
 
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