If I sell PE on 10Aug which I sq off on 21 Aug as very little premium left with profit of 5K when this amount of 5K will reflect in my trading account and available for withdrawal?
Hi @Ninaad
When you short-sell any option contract on 10th Aug, the premium amount will be added to your ledger the same day. However, the span and exposure margin will be blocked as per exchange requirements.
Once you square off the position on 21st Aug, only the buy value will be debited, and the span and exposure margin will be released. The profit amount will be available for withdrawal the next day.
You mean to say practically Profit is credited on Sold Option day (as prem is received while writing options), So after sq off we will withdraw only the margin which was blocked for sold Options after deduction of bought(Sq off) option . Correct ?