6.1 – How are positions settled?
Until recent times, trading in equity futures and options was cash settled in India. This means that upon expiry of the contract, buyers or sellers had to settle their position in cash without having to take delivery of the underlying security. In this video, we will learn about how positions are settled now in India and deep dive into the concept of “Physical Settlement”.
In the following video, we will learn about open interest.
We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
No key takeaways from this video 🙂