Upstox - RKSV - Trade in Rs 20 Max

[soft_trader]

@ RKSV ,

A query regarding a scenario in an Option trade !!

If I have bought a Banknifty ITM Put and after a big fall in the market it becomes a Deep ITM then the spread between the Bid & Ask becomes very large . Almost it seems that as a seller I am unable to find a buyer at a reasonable price keeping my profit intact. The spread is so large that I don't want to compromise with my profit. If I don't close the trade[in this case sell the option]till Expiry then what will be the scenario after expiry for me [assuming that the market remains subdued and my deep ITM Put still has a big spread in Bid & Ask].

Generally I close my trades within a stipulated time or if the target is met . But I want to be clear about this scenario as this situation may warrant to compromise a lot on the profit front.

Thanks.

Hi rocky,

Hope you are doing well. As per your question, if for example you bought BNF 12100PE when BNF is at 12000, now there is a big fall and BNF falls to 11450 on the expiry day and your contract becomes illiquid, and you let the position expire.

In this case the exchange will close the position and the value of your option contract will be Rs. 650 (because 12100-11450). Lot size is 25 so 650*25= Rs.16250/- So the exchange will settle the contract at the settlement price of the underlying, and the bid/ask will not matter.

But the thing is you will be charged a higher rate of STT of 0.125% on settlement value. Which is indeed very high.

 

[DataRam]

Hi rocky,

Hope you are doing well. As per your question, if for example you bought BNF 12100PE when BNF is at 12000, now there is a big fall and BNF falls to 11450 on the expiry day and your contract becomes illiquid, and you let the position expire.

In this case the exchange will close the position and the value of your option contract will be Rs. 650 (because 12100-11450). Lot size is 25 so 650*25= Rs.16250/- So the exchange will settle the contract at the settlement price of the underlying, and the bid/ask will not matter.

But the thing is you will be charged a higher rate of STT of 0.125% on settlement value. Which is indeed very high.

Thanks soft trader . I was somewhat unsure about this scenario. You clarified it quite nicely . The spread sometimes becomes so large that even this rate of STT will suffice to lock profits.

 

[vempallimadhan]

Dear RKSV,

Can you please let me know atleast now , which platform i can use to get the live quotes for nse f&o and equities.

You have been telling that you will be migrating the software for f&o from a year. please update me on this.


regards,
Madhan.

 

[RKSV]

Dear RKSV,

Can you please let me know atleast now , which platform i can use to get the live quotes for nse f&o and equities.

You have been telling that you will be migrating the software for f&o from a year. please update me on this.


regards,
Madhan.

Hi Madhan,

We have already started using NEST for MCX. We are planning to migrate equity, F&O, and currency to NEST in a few months too.

 

[vempallimadhan]

Hi Madhan,

We have already started using NEST for MCX. We are planning to migrate equity, F&O, and currency to NEST in a few months too.

again few months.. from so many months same answer ... may be you are a great follower of lord ganesha

 

[DataRam]

again few months.. from so many months same answer ... may be you are a great follower of lord ganesha

:lol::lol: :lol: :lol: :rofl: :rofl:

So basically RKSV are very spiritual. :clapping:

 

[RKSV]

again few months.. from so many months same answer ... may be you are a great follower of lord ganesha

Heh sorry to keep you waiting sir! We are making progress though -- NEST is up and live for MCX. Once things are stable, it won't be difficult to migrate NSE and BSE there too..

 

[Trader J]

:lol::lol: :lol: :lol: :rofl: :rofl:

So basically RKSV are very spiritual. :clapping:

They are very conservative, and also they want to learn first and than they want to apply...............

 

[vempallimadhan]

They are very conservative, and also they want to learn first and than they want to apply...............

Yes true ..the best way of success is learn first and then apply... rksv is good in all aspects except the trading platform they provide,of course initially they were providing NOW Express which gives live quotes, suddenly one day nse has stopped this feature without information.. and there started the problem .. its very difficult to refresh for every few seconds .. and i have been informing this inconvenience to rksv from longtime..

 

[vempallimadhan]

Heh sorry to keep you waiting sir! We are making progress though -- NEST is up and live for MCX. Once things are stable, it won't be difficult to migrate NSE and BSE there too..

Will you be providing Mobile trading for free in NEST??????