As Futures & Options (F&O) Contracts Near Expiry, exchanges increase margin requirements to reduce risk. This happens because:
- The chances of high price fluctuations increase near expiry.
- Margin requirements rise to ensure traders can cover potential losses.
- If a position is not squared off before expiry, the exchange may require full contract value settlement instead of margin trading.
To avoid issues, traders should monitor their margin balance and close positions if required before expiry.