spot/cash market is a place where trading happen on the same day and settlement too
Exchange plays important role in derivative market as it takes margin both d parties in future for settlement and premium in options
Margin is refundable paid by buyer and seller to exchange for signing the contract
MTM is mark to market
strike price mentioned in the optional contract and settlement happen at that price
expiry is the maturity date mentioned in the contract
lot size is the number of shares traded
, , Futures and Options, call, expiry date, Future, lots size, Margin, MTM, Nifty, physical and cash settlement, put, spot market, strikeprice
Hi,
Your Question 1 :: physical and cash settlement pl explain
Physical delivery is a term in an options or futures contract which requires the actual underlying asset to be delivered upon the specified delivery date, rather than being traded out with offsetting contracts while Cash settlement is transferring the compensation from the caution deposit on daily basis from buyers to sellers or vice versa.