option brokrege if i not square off

hi please tell me if i buy option and on the expiry i will not square off my position than what brokrege they charge buying side brokrege they charge from me ok and what selling side??????

At expiry, if option is ITM, then it is forced settlement by exchange. It could be short or long settled depending on the position. And broker will charge you commision as charges if you are closing the position.

If option expires worthless then no settlment charge.. i.e. u don't have to pay anything cause that option paper has gone to the dustbin.

Not sure if it varies from broker to broker.

Happy Trading

Hi,

I have one more query on this trade,Suppose if i buy an option at strike price of 10 and now it is trading at strike price 50 and i did not square off the position then will it be forcefully squared off at 50? or at any other price? on the expiry date. Pls clarify my doubt.


Thanks

The strike price does not change. You may be referring to "premium" instead. It will be squared off at the settlement price. The settlement price is calculated everyday at the end of session, and it is available from the bhavcopy file.

On the expiry your option value depand on underlying asset exp.
If you buy nifty 5000 call @ 70 and on the expiry if spot nifty close on 5050 than your call value 50 and if nifty close on 5100 than your call value 100

i have purchased 5700 CE @ Rs.0.05 yesterday i,e. on the expiry, Nifty closes @ 5692, the above CE closed @ Rs.2.70 as per Bhavcopy..
Now the question is ...what will happen if i have not settled the option, is the broker liable to pay me Rs.2.65...answer awaited from experts...

Your call expired worthless...you wont get anything from the broker/exchange.

Smart_trade