I want to know about option trading in nifty in simple manner I am new to it and can't understand it

Suppose If i sell nifty call option strike price 7500 at the premium 150 and again buy it at 130 on same day or any day before expiration than so i want to know if my trade is completed or they both remain in my account till expiry and vice a versa suppose i buy nifty call option strike price 7500 at the premium of 100 and sell it at 120 on same day or before expiry than what happen?

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Yes, when you square-off the positions (sell the already bought positions or buy back the already sold positions), you will have no further positions. Immediately upon square off the positions, you receive the profits in your trading acct. You can use the realized profits immediately on the same day for further trading.

You can square off the positions on the same day or ON or Before the expiry day at any day.

An index option contract is defined by the following


Example: OPTIDX-NIFTY-30 Oct, 2014-CE-8050.00

If you are buying and selling the same thing, then it cancels out your position, So if you buy the above contract for 100 and sell it for 120 (on any day), then your deal is off.

But if you are buying OPTIDX-NIFTY-30 Oct, 2014-CE-8050.00 at 120

and selling later say OPTIDX-NIFTY-30 Oct, 2014-CE-8000.00 at 170, then you are actually entering two different trades.

You need to close your deal on both these trades separately, by doing the opposite Buy/Sell.

If you want to know generic about options trading on nifty, watch this video for basics