Option selling premium receive

I’m really new to option learning, so I have this basic question

If I sell a option, will I receive the premium instantly in my trading account or it takes time?

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It will come to your account in T+1 days

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Yes, the premium will be credited immediately to your account. However, on the day you sell the option the premium recieved can only be used for buying option, if you wish to use it for other purposes, you can do it from T+1 day onwards.

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can I use the premium for buying stock in the cash segment?
and if I sell a option,
to square off my position, do I have to buy the option like in intraday short position?

Yes, from T+1 day onwards.

Yes, to square-off your short position, you need to buy it.

I have pledged ,margin of 1L , i sell to receive premium of 10k and buy options from it . Now lets say my loss runs at 5k ,i square up my sell position and hold buy position. Will peak Margin penalty or short margin penalty apply?

It doesn’t work like that…
You have pledged approx 1.25L worth of stocks so you received 1L margin money

With this margin money, you can only sell 1-4 lots (considering hedge). You cannot buy options with pledged margins…

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And for overnight positions need 50% in the form of cash…

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