Ive purchased option in call trade of acc now this trade in otm expiry date is 28march . What happened if it's not square off due to low volatility

Please explain. Ive purchased option in call trade of acc now this trade in otm expiry date is 28march . What happened if it’s not square off due to low volatility

Hi @Ravishekhar_Singh , welcome to Upstox community.

Allow us to address your query. If the position isn’t squared off till the date of expiry, it gets settled by the exchange. If you choose physical settlement, it’ll be settled either physically or in cash if no consent is given. Brokerage for physically settled contracts (Futures & Options) is 0.25% of the settled value or 0.1% for netted-off positions.

Exchange charges apply for all physically settled contracts. For cash settlement, there are no extra charges; standard trading charges apply. No charges apply if your options expire Out-of-the-Money (OTM).

Check out more details here: uptx.to/Physettle and uptx.to/price

Details of the settlement can be viewed in the ledger report or contract note sent to your registered email ID.

Contract note is emailed within 24 hours of the trade, and you can manually download it by following the steps at: uptx.to/contnote

To access the ledger report, visit uptx.to/ledger-report

Hope this helps. Feel free to contact us if you have any other questions.