Is FNO closing trades cash inflow available immediately?

F&O
1

HI,

tried searching if there is any such thread could not find any.
is FNO closing trades cash inflow available immediately?
e.g.

  1. Bought options exited. Do i get the premium value back immediately for trading?
  2. Sold options exited. I suppose i get back the margin blocked. But does the difference in premium sold and bought back gets settled immediately?
2

Hi @preemptlover, any intraday profits you make will be available for trading on T+1 day. The initial capital however will be available for trading immediately when you exit the position.

Also, the premium received from selling options can only be used for buying options in the same segment, you can use it for all other purposes from T+1 day. You can check this article for more details.

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3

Thanks. To clarify more:

If exiting positions which were bought on previous days initial capital or premium paid wont be available then? Not talking about profits as such rather settling the cash net of pnl post exiting any position intraday or not.
e.g say buy 1 lot option @100rs paying total premium of 5000 rs.
Next day selling the same @110rs … you should receive 5500 rs (Nifty 50 lot size)
Question is do i get 5500 rs back immediately or next day (note its not intraday)

4

When you exit the position, Rs. 5,500 will be immediately credited to your account. However, this can only be used for buying options in the same segment. You will be able to use these funds for all other purposes from T+1 day.

Also, if you had a short option position and square it off, the margin released can be immediately used for trading.

5

@ShubhS9 If I square off my short option position, I can use the margin released to take further short option positions multiple times during the day (in the same or different segments) right? ie shorting and squaring off option positions and using it to short different strike prices throughout the day. Only talking about margin released.

Please clarify my doubt.

6

The margin released from squaring-off your positions can be used for doing multiple trades or trading immediately in any segment without any issues.

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