What Happens When an Options Contract Expires on Pluang — Force-Close and Settlement Explained

On Pluang, an options contract does not run passively to automatic cash-settlement at expiry with no action taken beforehand — this is what happens when options expire on Pluang instead: Pluang force-closes any open options position on the underlying contract approximately one hour before market close on the expiry date. The position is closed out by Pluang ahead of the official market close, rather than left open to settle automatically against a final reference price. The outcome you receive depends on where the contract stands at the moment of the force-close: an in-the-money option is closed out at its remaining value, which is credited to your account, while an out-of-the-money option has little or no value left to capture, so you effectively lose most or all of the premium you paid to open the position. Because Pluang's options are American-style, a short position can also be exercised or assigned by the counterparty at any point before expiry — the expiry-day force-close is a separate, additional mechanic Pluang applies specifically to close out whatever is still open.

• Why the force-close happens: Rather than allowing a contract to run uncontrolled into the exact market close on its expiry day, Pluang closes out any open position roughly one hour ahead of time. This gives the position a definite, observable closing value instead of depending on a separately published final settlement price after the market has already shut.
• Timing is on expiry day, not before: The force-close only applies on the contract's actual expiry date. On any earlier day, the position simply continues to trade normally — nothing is force-closed until expiry day itself arrives.
• Force-close is separate from exercise and assignment: Pluang's options are American-style, meaning a short position can be exercised or assigned by the counterparty at any time before expiry — this is a distinct mechanic from the expiry-day force-close and can happen on an earlier day. The force-close specifically addresses whatever remains open once expiry day is reached.
• No fixed settlement schedule to plan around: Because closure happens through the force-close rather than a scheduled cash-settlement calculation, there is no separate settlement time or reference price to check after the market closes — the position's outcome is determined at the moment Pluang closes it.

Related questions:

Q: Do I need to take any action when my Pluang options position reaches its expiry date?
No manual action is required for the force-close itself — Pluang closes out any open position automatically about one hour before market close on expiry day, without you needing to submit an order or file any request on your side. That said, you should still keep an eye on the position in the lead-up to expiry, since the value you end up with reflects wherever the underlying asset and the contract stand at the exact moment the force-close happens, not a price or timing of your own choosing.

Q: What happens to an in-the-money option when Pluang force-closes it at expiry?
An in-the-money option is closed out at its remaining value at the time of the force-close, and that value is credited to your account rather than left to settle later against a separately published reference price. Your net result is this closing value minus the premium you originally paid to open the position — the closer to market close the position is held on expiry day, the more the final outcome reflects the underlying asset's price right before Pluang steps in to close it.

Q: What happens to an out-of-the-money option when Pluang force-closes it at expiry?
An out-of-the-money option has little or no remaining value by the time Pluang force-closes it on expiry day, so closing the position out captures little to no proceeds for you. In practice, this means you lose most or all of the premium you originally paid to open the position — this is the maximum possible loss on a bought options contract, and it applies regardless of how far out-of-the-money the underlying asset's price ends up relative to the strike price.

Q: Is the expiry-day force-close the same as early exercise or assignment on Pluang?
No — they are two separate mechanics that can occur on different days. Because Pluang's options are American-style, a short position can be exercised or assigned by the counterparty at any time before expiry, on whichever day the counterparty chooses to act. The expiry-day force-close is different: it applies specifically on the contract's expiry date, roughly one hour before market close, and only affects whatever position is still open once that particular date and time arrive.