Donot Exercise Option : Latest Update

The  new  rule  will  kick  in from March 28, 2023, NSE's circu­lar said.

This  means  retail  traders will  be  under  pressure  to square  of f & o  their  position ahead  of  expiry  and  cannot wait  till  the  last  minute.  If they  fail  to  do  and  the  op­ tions turn in ­the ­money by a narrow  margin,  it  will  have to be settled by giving or tak­ing  delivery  of  shares,  thus adding to their costs.  

Besides, traders may have to square of f &o  in a hurry and constantly monitor their po­sition,  especially  on  the  ex­piry day, which will not only escalate  their  transaction costs  and  rob  potential profits, but also impact their health too.

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