Difference between Square off and Exercise ???

A

anupvishy

New Member
#1
#1
Hey guys i have a query , I am using ICICI direct for trading , wat is the difference between square off and exercise . I have bought a put option and presently in the money option , i have a confusing whtr to square off or exercise my option........wat is the main diff with these ???
 
rajeabc

rajeabc

Well-Known Member
#2
#2
anupvishy said:
Hey guys i have a query , I am using ICICI direct for trading , wat is the difference between square off and exercise . I have bought a put option and presently in the money option , i have a confusing whtr to square off or exercise my option........wat is the main diff with these ???
Click to expand...

In square off -you want to close the position and take profit/loss according to price at that time.
In Exercise - you want to take delivery .
 
O

optionwala

New Member
#3
#3
Another difference is...

Exercise happens at the strike price of your option.

For square off you can put the limit or market order and close the position.. as in sell for buy and buy for sell.
 
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