wait a minute.. if the option expires in the money.. ( option i was short ..i has sold ) ..am i obligated to deliver the underlying or i am obligated to re buy back ? assuming no one exercised it i guess some one has to ...right..may b the broker has to exercise it ? this is forex should i beleve the brokers if they said i have to buy it back ??? please advise
u dont understand.. i have read it 1000 times.. yet, the institutions that are licences to steal telling me that thats xactly how i feel.. unbeleivable world we live in.. this is indeed the jungle... and now i get to be lamed for not knowing the answers... but i do the ansewer is yes ...but the brokers are saying no. i even have a broker in forex telling me i can not take premium if i sell options.. premium can not be touched till they xpire..
there is no such a thing as dumb question.. i am doing a demo.. I know most of the option rules and terms ...american, europian, itm, otm, strike price, obligation to deliver undelying... delta, theta, and volitality and yet, the brokers seem not to know them and u are making fun .. unbeleivable world.. trust me , i will figure it out and beat u in the game u r definitly under estimating ..i am only doing a demo good day
Quote from cloned777777: there is no such a thing as dumb question.. I beg to differ -- this has been covered ad nauseum in an earlier thread you created. i am doing a demo.. I know most of the option rules and terms ...american, european, itm, otm, strike price, obligation to deliver undelying... delta, theta, and volitality and yet, the brokers seem not to know them and u are making fun .. unbeleivable world.. Yeah, you're obligated to deliver the undelying, netting you a short position in the spot currency. In OTC forex it need only print ITM one-pip to cause an exercise/assignment. Don't deal with any broker that cannot answer such a rudimentary question. After-all, the dealer in question is your counterparty. trust me , i will figure it out and beat u in the game u r definitly under estimating ..i am only doing a demo Perhaps, but I've got a bit of a head-start on you
thanx a bunch for taking your time to answer my Q.. "In OTC forex it need only print ITM one-pip to cause an exercise/assignment." i hoe and pray that that is the case.. then i will have a hell of an edge with strategy i have in place. I figured, if i am covered, i'd rather be assiigned to deliver, as oppose to loose by buying it back.. looking at the screen, as soon as i goo short on options, i have lost on the spread, if it is itm then i lost even more buying it back. However, if i were assigned to deliver....then i loose nothing! i can not wait to call them tomorrow
The credit received increases the balance in the account, effectively-reducing the margin required to short the premium. You can withdraw the premium you sold, provided you're not on call.
"You can withdraw the premium you sold, provided you're not on call." so i can take the $4 out, provided it is still OTM. once ITM, i get margin call.. but if i am covered, i am ok .. right ? i can not wait to talk to the brokers .. OMG
Well, you won't be required to buy it back provided the notional size doesn't force you into margin deficit. Saxo doubles the weekend haircut at Noon EDT on Friday. They will automatically liquidate the entire account at the market if you go into margin deficit on the weekend margin call.