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What are some reasons TradeZero America may close out an option position?

TradeZero America will liquidate positions based upon certain expiration or corporate action related events which, after giving effect to, would create undo risk and/or operation concerns.

If TradeZero America deems the exposure of exercise/assignment will create undo risk then TradeZero America has the right to either liquidate options prior to expiration, allow the options to lapse or allow delivery and liquidate the underlying at any time. Also, the account may be restricted from opening new positions to prevent an increase in exposure.

If TradeZero America determines the exposure is excessive, TradeZero America may liquidate positions in the account to resolve the projected margin deficiency.

If the exercise or assignment of an option would result in a short position in a cash account, the option position may be closed by TradeZero America on the expiration date.

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