If I let my option positions get exercised, are there extra charges?
Note: STT on exercised contracts from Sep 1st, 2019 will be charged at the rate of 0.125% of intrinsic value (how much in-the-money the option is) and not on the total contract value. Intrinsic value for OTM (out of the money) options is always zero. Read more in this post on TradingQ&A.
- If you are shorting options, you would have already paid STT (0.05% of the premium value), so if you let it expire on the exchange there are no extra charges.
- If you have purchased options, you get the option to choose if you want to exercise it or not. If you choose to exercise it, the STT used to be ‘0.125% of the contract value’. Currently, as indicated above, STT is '0.125% of the intrinsic value'.