In case of spread contracts, you are advised to provide margins for both the legs since the risk of one leg square off by you anytime would result in physical settlement of the other leg. * If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 28th December 2021.
If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement. To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD). 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*. 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*. 25% of delivery margins computed on expiry -3 days EOD (Monday). 
10% of delivery margins computed on expiry -4 days EOD (Friday). Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.ĭelivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below: In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions. You have not provided your consent for physical settlement. Your position will automatically be squared off in case: What other impact could this have on your positions? Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted. Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current December 2021 expiry F&O contracts from Wednesday, 29th December 2021 onwards. Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient ledger balances / holdings (whichever applicable) is available. 
To provide your consent for physical settlement of open Stock F&O contract(s) with December-2021 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 28th December 2021. To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same: What is the process for Physical Settlement on Upstox? Holdings shares of lot quantity positioned to be available in Demat account. Short ITM CE options, treatment would be similar to Long ITM PE options. Short ITM PE options, treatment would be similar to Long ITM CE options.įree ledger balance equal to the contract value to be maintained. If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done. 2000, then the contract is said to be ITM (In-The-Money). If the underlying price of Reliance is lesser than strike price of Rs. Long - 1 lot of Reliance, 250 quantity for Strike price of Rs. #No bs day trading webinar download free
If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done. If the underlying price of Reliance is greater than the strike price of Rs. Long - 1 lot of Reliance, 250 quantity for strike price of Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 5 lakh contract valueį&O = 20% charges i.e. Short positions of 1 lot Reliance 250 quantity at Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. Long positions of 1 lot of Reliance, 250 quantity at Rs. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash. In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, physical settlement takes place. As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.
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