Why can’t I use the funds from selling my carry-forward Options position for trading in Futures or Cash segments on the same day?
When you sell a carry-forward Options position, the credit (premium) is settled by the exchange on the next day (T+1 day). The exchange or clearing house credits the premium from the Options sale on a T+1 day.
So, the funds from that sale will be available for use only on T+1 day, and cannot be used for new trades in Futures or the Cash segment on the same day (T day).
Common FAQ's
- Can I use the premium/margin from selling my carry-forward Options position for other trades on the same day?
- Why can’t I use the funds from selling my carry-forward Options position for trading in Futures or Cash segments on the same day?
- What happens to my In-The-Money (ITM) stock Options on expiry day?
- What benefit do I get after selling shares from my demat on the same day (T day)?
- How is the limit against Sell given?
- Can I trade in Options and Futures on Expiry Day?
- When will my position be squared off due to losses?