Every single share has the same value of a particular company. In derivative instruments, Exchange will get a caution deposit from buyer and seller. Obligation is the difference between future and option. Buyer and seller decides the premium in derivatives. All the derivatives will help the trader to exit from the risk level by giving various trading opportunities.We can trade NIFTY in derivatives.
, , Futures and Options, derivatives, Margin, MTM, OPTION AND FUTURE DIFFERENCE, physical and cash settlement, premium, strike price
Hi,
For Example:
If you analyze the NIFTY and say that NIFTY will go up 100-200 points from the current 10,000 mark within April 30th, then
you can buy NIFTY April 2018 Future contract or
you can buy NIFTY April 2018 call option contract with a strike price of 10,000.
Hi..Thanks for ur kind answer. And it is more understandable.