Will physical delivery positions be squared off automatically?

• Related Articles

• What is physical delivery?

  Understanding Physical Delivery in Derivatives Trading Physical delivery refers to the actual transfer of the underlying asset—such as stocks, commodities, or bonds—when an options or futures contract reaches its expiration. Unlike cash settlement, ...

• What happens to OTM positions marked for physical delivery?

  No, you do not need to mark physical delivery for OTM options. Here’s why: OTM (Out-of-the-Money) options have no intrinsic value at expiry. These contracts expire worthless, meaning there is no obligation to give or take delivery. Physical ...

• What is Delivery Margin on Physical Settlement?

  The stocks that have been identified for physical settlement would attract the delivery margin as is currently being done in the Capital market segment. These margins will be part of the initial margin that would be additionally collected by the ...

• How to place request for physical delivery of Futures and Option position?

  Requesting physical delivery of Futures and Option positions involves following a structured process within the trading application. Here's a step-by-step guide: 1. Open the 5paisa Mobile App. 2. From the menu, select “Books.” 3. Choose “Position” ...

• What are the risks associated with the physical delivery of stock Futures & Options (F&O)?

  In the Indian capital markets, the physical delivery of stock derivatives, particularly stock futures and in-the-money stock options at expiry, introduces significant systemic risks. Here's a simplified breakdown of the implications: 1. Stock Futures ...