HELP & SUPPORT

Options trading

INDEX
Options trading २

Why am I unable to I sell my options contract?

If you're unable to sell an options contract on Punch, it is likely that you have insufficient funds to meet the required margin. Add funds if needed and retry.

  • If you're unable to buy or sell an options contract, it's likely due to insufficient funds. You need to maintain a fixed margin in your account.
  • Try adding the necessary funds on Punch, and then attempt to trade your contract.
  • If adding funds doesn't resolve the issue, there may be something specific with your account— contact us at +91 79482 22271 for immediate support.

Why is my chart not loading?

If your chart isn't loading on Punch, ensure you have a stable internet connection. For frequent issues, reinstall the app or contact us.

  • If the issue has occurred a couple of times, try reinstalling the application.
  • Punch prioritises the reliability of chart and price data. If you experience frequent issues, contact us directly to report the problem.
  • Ensure that your internet connection is stable and strong, as Punch requires a good data signal for optimal performance.

Why is my order getting rejected due to 'Trading is not allowed in this script due to less liquidity'?

At Punch we do not allow trading in contracts that are not liquid. This rejection means that the contract in which order was placed is not liquid and hence trading in the contract is blocked by Punch

What happens if the option contract is not squared off on the expiry date?

Index options are cash-settled, and the implications are as follows:

Bought Index Options:

  • ITM (In-The-Money) Contracts: STT is 0.125% of the intrinsic value (not the total contract value) and is charged on expiry. Brokerage is also charged on both transactions.
  • OTM (Out-of-The-Money) Contracts: Expire worthless. You lose the entire premium paid. Brokerage is only charged when purchased.

Shorted/Sold Index Options:

  • STT is only charged when initiating the short.No STT on expiry. The trader keeps the premiums based on the option's value.

Why was the settlement price zero for the option position on expiry, although the Last Traded Price (LTP) is not zero?

The settlement price of an option contract on the day of expiry is the Intrinsic value of that contract based on the closing price of the underlying instrument.

An option contract that expires OTM will have 0 intrinsic value and hence the settlement price will be 0. LTP is the last price at which the contract got traded, and a trade cannot happen at 0 price.