Hello,
I started trading in Options a few months back. I understood that for any open position not squared off by the individual on the expiry day, the exchange (or is it the broking house?) automatically squares off at the relevant rates.
The question: I had three call positions of different companies which I did not square off. The reason was that the value on the expiry day was much below the value I bought. Common sense told me that in addition to incurring a loss, I would also pay brokerage and other charges, which would increase my net loss. So, I did not square off on the expiry day.
The transaction and contract statements do not indicate of any square off. Does it mean that these positions which I bought, were never sold back? Learned members, please educate me.
Regards,
Ashwirag.
I started trading in Options a few months back. I understood that for any open position not squared off by the individual on the expiry day, the exchange (or is it the broking house?) automatically squares off at the relevant rates.
The question: I had three call positions of different companies which I did not square off. The reason was that the value on the expiry day was much below the value I bought. Common sense told me that in addition to incurring a loss, I would also pay brokerage and other charges, which would increase my net loss. So, I did not square off on the expiry day.
The transaction and contract statements do not indicate of any square off. Does it mean that these positions which I bought, were never sold back? Learned members, please educate me.
Regards,
Ashwirag.