Forgot to Square-off on Expiry

#1
Hi guys,

I bought 1 lot of MCX Natural Gas (October series) @ price of 180. The expiry was yesterday i.e., 25th October 2011 and I forgot to square-off the same. I did not realize that yesterday was expiry, otherwise I would have squared it off. The Natural gas closed at 182 yesterday.

Today, when I checked balance, the margin was still blocked.

I am worried.

What happens to the unclosed positions? I have no intention of taking delivery. Also, there is not sufficient funds in my trading a/c.

I have never been in such situation.

Will there be any penalty for not honoring delivery? If yes, what would be the penal amount?

Today, Natural gas prices are up. Will it push up the penalty, if any?

How long will it take to release the margin?

Worried.

Alchemist, do reply man.

Quick.

Capriura
 
Last edited:

Alchemist

Administrator
Staff member
#2
Does anyone actually deliver natural gas?

I looked at the delivery data at MCX.

Nobody has "delivered" natural gas in 2011.

Delivery @ MCX

There is a penalty if you are assigned delivery, but don't take it.

I am not sure, but the margin should be released by the pay-out day (expiry + 2 working days)
 
#3
Alchemist, Thanks for reverting back.

Anyways, my query is addressed from MCX website.

It says that the unclosed positions will be closed at Due Date Rate (DDR) and the funds will be released by next trading day.
 
Top