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Selling Options


NagaJaavvadi

Question

Hi All,

I am using a demo account to check how options work. Theoretically, when we sell an option, premium should be collected. However, when we sell the option in IG platform, it only shows the margin that is held and shows the profit or loss. Can anyone kindly explain how this works in IG.

Regards,

Naga

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as you are not strictly selling an option in ig , you are betting on the price of an option which is a subtle difference.....however to answer your question, you only get the premium at expiration or if you close early when trade has gone your way...the running profit/loss of the trade takes the premium into account....as you say, with a regular options broker, you receive the premium from selling options upfront

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