Need help

Need help !

Please tell me what will happen if i do not square off short position before the expiry of unitech ca 90. I sold it at 1.20 and now it is at 2.10. Will it be bought as market order by the broker?

Where can i get to know the % of amount required to trade in stock futures?
For example: some stock futures require only 70% of the total price of the lot.

Another thing i want to know is that what is the procedure to calculate the exact amount of money required to short sell a stock option, whether it is In the money , at the money or out of the money option.

Any help would be appreciated

It will be sq/off only when you will not have enough money in your account to maintain the MTM otherwise it will be open till expiry...dont get so panic..man

good luck
abhi

I mean even if i dont square it off on the day of expiry.

You have shorted a stock option, and stock options are American option.

So anybody who has bought unitech CA can excercise it any day if he wish.(excercise time is after market hours).

you are free to square off your position on any day provided liquidity is available.(ie buyers are available).

suppose at the day of expiry if the price of unitech is below 90 and i didn't square off my short position of unitech ca 90 at 1.2, will i get 1.2X4500 rs?

think what will happen if the stock can breakout first sign close above (88) to 95
u r playing with fire.