I am a beginner in options trading. Last few sessions I bought few call and put options and covered my positions in profit. I have a query. If I buy a lot of nifty put option then I have to have the total amount of premium money in my trading account. Suppose If I sell a lot of nifty put or call ( say 1 lot of nifty 4900 call at Rs.110) then I will receive the premium amount in my account. Apart from this, is it neccessary that I must have additional cash in my account? My broker is ShareKhan. How exactly I have to cover this position before expiry? If I buy the same call at lower price after selling it at higher price , will this deal considered as closed? Please suggest your answers with respect to nifty options.
Regards
Rajesh
Regards
Rajesh