Put options
- Thread starter sdinesht
- Start date
I will try to make it simple for you without going into debit or credit.
When you buy any option (call or put), you PAY the premium to buy the option.
When you write (selling first instead of buying first) any option (call or put) you GET the premium but you PAY the margin. Since margin will most likely be higher in effect you PAY the difference of margin and the premium.
Please note that there'll usually be two separate entries for the premium you get and the margin you pay.
When you buy any option (call or put), you PAY the premium to buy the option.
When you write (selling first instead of buying first) any option (call or put) you GET the premium but you PAY the margin. Since margin will most likely be higher in effect you PAY the difference of margin and the premium.
Please note that there'll usually be two separate entries for the premium you get and the margin you pay.
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