For those who trade on stock derivatives, there is a process where traders deliver or receive the . To take or give of the entire contract value worth of stocks, one must either have full cash or stocks post-expiry. Therefore, this increases the risk and the below policy will be followed:
- All current month stock F&O will be blocked on the expiry day (Thursday) except for Futures .
- 35% of the contract value will be blocked one day before expiry(Wednesday).
- 100% of the contract value will be blocked on the expiry day (Thursday) for the current month’s stock F&O open contracts.
- The margin required for Futures Intraday will be 100% of the contract value on the expiry day.
- You can trade in stock F&O as per the delivery margin applicable from the exchange till expiry-1 day (Wednesday/one day before expiry).
- All the current month’s open positions that come in margin shortfall will be squared off on the expiry day (Thursday) as and when required.