Some basic doubt in options

jaganfox

jaganfox

New Member
#1
#1
I am very new to option trading.
I bought NIFTY options for 137 rupees today morning.
I did not sell the options today. By the end of the day the NIFTY options was reduced to 128 rupees.
I see a negative balance in my account. I dont understand why.
Please let me know if the single days loss, will be automatically debited from the trading account.
Very confused where my money went......
 
rajeabc

rajeabc

Well-Known Member
#2
#2
jaganfox said:
I am very new to option trading.
I bought NIFTY options for 137 rupees today morning.
I did not sell the options today. By the end of the day the NIFTY options was reduced to 128 rupees.
I see a negative balance in my account. I dont understand why.
Please let me know if the single days loss, will be automatically debited from the trading account.
Very confused where my money went......
Click to expand...
When you buy option you get contract in your a/c and you pay premium next day . It is not based on your profit or loss.
When you sell that contract you get money worth of that contract.
In your case : If you bought 1 lot (50 ) nifty call the your a/c would have debited by 137*50+brokrage..
 
M

MindlessTrader

Well-Known Member
#3
#3
jaganfox said:
I am very new to option trading.
I bought NIFTY options for 137 rupees today morning.
I did not sell the options today. By the end of the day the NIFTY options was reduced to 128 rupees.
I see a negative balance in my account. I dont understand why.
Please let me know if the single days loss, will be automatically debited from the trading account.
Very confused where my money went......
Click to expand...
please read about them...before investing in options....
 
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