Difference between Square off and Exercise ???

[anupvishy]

Hey guys i have a query , I am using ICICI direct for trading , wat is the difference between square off and exercise . I have bought a put option and presently in the money option , i have a confusing whtr to square off or exercise my option........wat is the main diff with these ???

 

[rajeabc]

Hey guys i have a query , I am using ICICI direct for trading , wat is the difference between square off and exercise . I have bought a put option and presently in the money option , i have a confusing whtr to square off or exercise my option........wat is the main diff with these ???

In square off -you want to close the position and take profit/loss according to price at that time.
In Exercise - you want to take delivery .

 

[optionwala]

Another difference is...

Exercise happens at the strike price of your option.

For square off you can put the limit or market order and close the position.. as in sell for buy and buy for sell.

 

[santaji4]

can u pls explain how u can take delivery in NIFTY Index option

 

[ajfrod]

can u pls explain how u can take delivery in NIFTY Index option

It is not possible to take delivery in a nifty index option, it is settled in cash.