Hey guys so i have looked all over and the answer seem to confuse me morr than clear my doubts. I am new to the concept.
Are options trading in India European or American? If i buy an option today can i book profits before the expiry date? If yes why is it called European?
Also if you guys can share any links related to the same will be much appreciated 
Options traded in India are European Options.
Yes, you can take position and square-off anytime you want before expiry.
You can buy and sell the option at any time you want, but unlike American Option, where one can exercise the Option anytime they want before expiry, European Options can be exercised only on the day of expiry.
You can learn more about Options on Varsity:
Sorry I am new to this… But can you please explain what’s the difference between buying and selling an option… Vs exercising an option?
When you buy and sell options before expiry, you’re trading the premium and looking to profit from fluctuations in premium, similar to trading stocks.
Would request you to go through this module on Varsity, which will explain everything about Options in detail 
Call Option gives option buyer the right but not an obligation to buy the underlying asset at the specified price within the specified time period. While Put Option, gives option buyer the right but not an obligation to sell underlying asset at specified price within the specified time period.
With European Options, option buyer can exercise his right only on the day of expiry, while with American Option, the buyer can exercise his right anytime.
Talking with context of European Options which are traded in India. Although you can buy and sell this options anytime before expiry, you aren’t giving or taking delivery of the underlying asset when you’re closing your position. What you are essentially doing is looking to profit from daily fluctuations in premiums of this options.
The settlement of this options will be done on expiry day, where if your option position expires ITM you’ll be obliged to give delivery of underlying asset or take delivery of the underlying asset. If your option position expires OTM, it will expire worthless and there will be no physical settlement obligation.
Also, one thing to keep in mind Index F&O (Nifty, Bank Nifty, Nifty Finance Services) are cash settled. While, Stock F&O are physically settled where you are obliged to take or give delivery of underlying asset if your Option position expires ITM.
Thank you for taking the time to explain this… Much appreciated
In India Options can only be exercised on expiry. You can ofcourse square off before expiry.
If you Sell a Call and it expires ITM, you have to give delivery of shares at strike price.
If you Sell a Put and it expires ITM, you have to take delivery of shares at strike price.
If you Buy a Call and it expires ITM, you can choose to (no obligation) take delivery of shares at strike price.
If you Buy a Put and it expires ITM, you can choose to (no obligation) give delivery of shares at strike price.
Which is the better format? American or European?
