I have a doubt
In options we have to pay premium right
So example ( Nifty ltp 11000)
If I buy Nifty 12000 ce at 100rs option ×25qty.
Now my approx margin required is 2500 .
Now Nifty is trading at 12000 and option ltp is 1000
So technically profit is approx 22500rs
So can u explain what is the premium which I am paying and profit which I am receiving. @siva
Would really appreciate if you reply
When you buy an Option you will be paying say 100 * Lot Size, now if you square-off your position you will receive say 1000 * Lot Size and your net P&L be 900 (1000 CMP - 100 premium you paid to take the position) * Lot Size.
You should go through this module on Varsity, you will get to learn a lot more about Options.