Trading for Living -- Successfully Completed one year as Full Time Trader

[govindheg]

Question to knowledgeable traders - was legal action available in this case where the platform itself had broken down on expiry day and there were to other means to square it off?

I have protested to my broker about this,but to no avail. I have read in news papers about brokers demanding compensation from NSE but nothing heard further.

 

[amrutham]

Meaning you should never leave an option open, whether ITM or not. Am I right?

Its always safe to close the option positions before market close. If the strike is more than 100 points away OTM, then you can leave them alone.

Generally the option LTP and excercise price will not differ by more than 20 points.I don't know what caused that much wide difference that week.

If I remember correctly, BN LTP was around 25950 around closing time and the closing price was adjusted to 26016. Not sure how they calculate the closing price.

 

[govindheg]

Its always safe to close the option positions before market close. If the strike is more than 100 points away OTM, then you can leave them alone.

Generally the option LTP and excercise price will not differ by more than 20 points.I don't know what caused that much wide difference that week.

Thank you. I normally close my position as my trades are MIS. Is that settlement rule applies to MIS trades also?
My trades were MIS on that day too.

 

[amrutham]

I have protested to my broker about this,but to no avail. I have read in news papers about brokers demanding compensation from NSE but nothing heard further.

To be on safer side, have one more accout with a different broker and preferably a different trading platform.

Atleast you can take hedged position .

 

[amrutham]

Thank you. I normally close my position as my trades are MIS. Is that settlement rule applies to MIS trades also?
My trades were MIS on that day too.

Who was your broker? Generally brokers close all MIS positions before market close.

 

[govindheg]

Who was your broker? Generally brokers close all MIS positions before market close.

That was my impression also. They normally do. But in this case, I was penalized like this. But are you saying, settlement rules are not applicable to MIS trades?

 

[govindheg]

My broker is Tradeplus

 

[amrutham]

That was my impression also. They normally do. But in this case, I was penalized like this. But are you saying, settlement rules are not applicable to MIS trades?

For exchange, it does not matter whether the order type was intraday or normal. settlement rules are same. Did you check with your broker why they have not closed the MIS position before market close?

 

[govindheg]

For exchange, it does not matter whether the order type was intraday or normal. settlement rules are same. Did you check with your broker why they have not closed the MIS position before market close?

Haven’t done. But will do. Thanks

 

[anildnr]

Its always safe to close the option positions before market close. If the strike is more than 100 points away OTM, then you can leave them alone.

Generally the option LTP and excercise price will not differ by more than 20 points.I don't know what caused that much wide difference that week.

If I remember correctly, BN LTP was around 25950 around closing time and the closing price was adjusted to 26016. Not sure how they calculate the closing price.

Generally the closing price is the last 30 minutes avg price as per my knowledge. Thats why closing price is diff than the price at 3:30