Future contract, the buyer and seller has obligation to settle on expiry dt.
in option, the seller has obligation & rights to sell, and buyers have rights but no obligation to buy.
option has many strike prices and we can both sell & buy both trends
margin: Money collected from the derivative traders in advance to cover the possible loss of the contract
MTM; karket to market variation in daily price is callected and delivered to the contract buyer and seller on price movement basis.
Premium: The amount charged from the option buyer to the option seller for the obligation of selling the contract in the assured strike price
strike price; In options, the contracts happen in various prices above & below the spot price. They are known as strike price
Expirydt: Expiry of the derivative contract on which settlement has to be done in cash. may be monthly or weekly
Lot: no. of shares in one unit of traded quantity valued about 5lakhs in F&O
, , Futures and Options, call, Future, MTM, options, premium, put, strike price
