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0 DTE Liquidation Criteria
At 3 PM EST, on the last trading day of the contract. If you’re holding a contract that is in the money or super close to going in the money you may be forced to close.
Why? It’s simply a risk thing. If you own an $ABC $5 Call and $ABC is at $6 you’re going to be on the hook for $600 worth of shares at expiration. If the value of those shares is greater than 4X your account size, you may be forced to close.
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