In future and options the deal/trade happens today but the settlement happens only on the contract expire date. in future on the final expire date the settlement is done in one shot. but in future options its on day to day activity the exchange will settle everyday.
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Hi sir,
Answering to your question 1 :: what is lot size ? why its important ?
Lot size – Minimum number of shared can be bought or sold in the contract.
In contracts shares should be bought or sold only in lots.
Answering to your question 2 :: why sud we go for future and option?
Futures and Options are used to optimize the risk and to prevent loss in the potential movements in the prices of the underlying asset.
Also Futures and Options requires less upfront cost compared to the spot trading.