Hello
I am novice in currency options trading and have started trading in Options. Recently I carried out following option currency trade.
Short Option currency on 23 Dec 2015
=========================================
OPTCURUSDINR29DEC2015 66.50 CE S -3 0.0150 0.0000 0.0150 45.00
Pay In / Pay Out Obligation
45.00
Service Tax (@14.00% ) 0.42
Exchange Transaction Charges
0.03
Min.Brokerage 2.97
SBC Tax
0.01
Net Amount Receivable by Client
41.57
=============================================
Squared off on 28 Dec 2015
===========================================
OPTCURUSDINR29DEC2015 66.50 CE B 3 0.0075 0.0000
0.0075 -22.50
I would like to understand how -22.50 is charged from me on this trade. Is it premium I have to pay for squaring off the short sell? Any detailed understanding of currency option selling would be a great help.
regards,
Bhaskar
I am novice in currency options trading and have started trading in Options. Recently I carried out following option currency trade.
Short Option currency on 23 Dec 2015
=========================================
OPTCURUSDINR29DEC2015 66.50 CE S -3 0.0150 0.0000 0.0150 45.00
Pay In / Pay Out Obligation
45.00
Service Tax (@14.00% ) 0.42
Exchange Transaction Charges
0.03
Min.Brokerage 2.97
SBC Tax
0.01
Net Amount Receivable by Client
41.57
=============================================
Squared off on 28 Dec 2015
===========================================
OPTCURUSDINR29DEC2015 66.50 CE B 3 0.0075 0.0000
0.0075 -22.50
I would like to understand how -22.50 is charged from me on this trade. Is it premium I have to pay for squaring off the short sell? Any detailed understanding of currency option selling would be a great help.
regards,
Bhaskar