@vJay/Prabit,
Gold/Silver/Agricommodities are compulsory delivery contracts. So what it means is that if they enter the compulsory delivery period, you can get assigned. So if you are long, you are forced to take delivery and short give delivery, but only if assigned.. Getting assigned is not common, but if you are, then god only can save you.. Image what you would do with a quintal of turmeric.. ..
But not to worry, because we at Zerodha ensure that all positions are squared off before the commodity goes to compulsory delivery or roll over the positons... The time given is till around 6pm the day before it goes to compulsory delivery..
Crude, Alum, copper, Zn etc are cash settled, so works like nifty futures. On the expiry exchange releases a due date rate(DDR), all contracts are settled in cash according to the due date rate..
Cheers..
Gold/Silver/Agricommodities are compulsory delivery contracts. So what it means is that if they enter the compulsory delivery period, you can get assigned. So if you are long, you are forced to take delivery and short give delivery, but only if assigned.. Getting assigned is not common, but if you are, then god only can save you.. Image what you would do with a quintal of turmeric.. ..
But not to worry, because we at Zerodha ensure that all positions are squared off before the commodity goes to compulsory delivery or roll over the positons... The time given is till around 6pm the day before it goes to compulsory delivery..
Crude, Alum, copper, Zn etc are cash settled, so works like nifty futures. On the expiry exchange releases a due date rate(DDR), all contracts are settled in cash according to the due date rate..
Cheers..
But not to worry, because we at Zerodha ensure that all positions are squared off before the commodity goes to compulsory delivery :hug::thanx:
Crude, Alum, copper, Zn etc are cash settled:clap::cheers::yahoo: