Futures and option market- Trading instruments plays an important role in the stock market.It helps to buy or sell share with minimized loss but it requires more knowledge.Future market- 1.Buyer and seller both are having their own rights 2. We realized the money at the EOD in your account. 3. Exercised the money from margin to execute the contract
Option market-Buyer of call have rights to buy ,buyer of put have rights to sell but seller of call and put option have no rights only obligation when buyer exercise the agreement.2.Realized the money at the expiry date 3.premium paid to the seller to sign the contract.
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Hi sir,
Answering to your question 1 :: In future market only margin is required for trading?
Yes, Margin is only required to trade in futures contracts.
Answering to your question 2 :: explain in the money control /out of money control?
In the money: call option’s strike price is below the market price or strike price of a put option is above the market price of the underlying asset.
Out of the money: call option with a strike price that is higher than the market price or a put option with a strike price that is lower than the market price of the underlying asset.