Will I be allowed to trade in Commodity Options on expiry day?

Yes, trading in Commodity Options on expiry day is allowed (In Gold, Silver, Crude oil, Natural gas and respective mini contracts), subject to the following restrictions and risk management guidelines:

NRML (Carry Forward order type):

• Fresh option buying and selling are allowed till 10:00 PM.
• All long (buy) open positions will be liquidated by RMS post 10:00 PM on a best-effort basis, subject to available liquidity.
• This is to mitigate the risk of positions devolving into futures, which may lead to losses or margin shortfall penalties on the following day.

MIS (Intraday order type):

• Fresh buying and selling are allowed till 11:00 PM.
• All open MIS positions will be liquidated by RMS post 11:00 PM on a best-effort basis, depending on market liquidity.
• his ensures avoidance of futures conversion risk and associated margin implications the next day.

Important Notes:

• All pending orders will be cancelled post the respective cut-off times to facilitate RMS square-off.
• Option sellers may place square-off orders till market closing. RMS will not intervene in open option sell positions.
• If an option sell position expires in-the-money (ITM) and is exercised by the counterparty, it will convert into a futures contract on the next trading day. If not exercised, the position will be cash-settled.
• Any option buy positions that cannot be squared off due to liquidity constraints may be marked as Do Not Exercise (DNE) to prevent margin shortfall penalties or unintended losses.