On the supposition that I book a NIFTY Call Option Trade in December/January (with some ‘X’ Strike Price) and I pay the margin for getting into the trade (say one Lot Size (75)* Premium prevalent now), apart from the margin, do I get charged with anything else?
Query – 1
When the option trade carries forward to next day and the next day and so on, depending on volumes and other factors the premium of the option increases or decreases, so the maximum loss for me (just in case the trade goes bad) is the “INITIAL PREMIUM/MARGIN” i had paid, right?
Can anyone slightly elaborate on how the carry forward of the option trade works, there are no hidden costs, penalties or anything right?
Like I book a normal NIFTY Index Call Option Trade with NRML attribute and the leave the trade at that until expiry or some weeks before expiry?
Can I square off the option trade before expiry? or is it mandated to be done on expiry only?
Please can anyone elaborate a bit?
I had gone through the varsity module and it was great.