If Settlement is done in a day it is called Spot market.
Margin: Both Buyer and Seller has to maintain the some amount to avoid the counter party risk.
MTM: If buyer/Seller gets profit then then the excess amount will be credited to their account.If buyer/Seller get loss then then they have to maintain nthe margin amount Basically it is happened on daily basis.
Lot Size:Contracts are traded in Bulk Quantity which is called lot.For Example Nifty 1 Lot = 75 quantity.
Expiry Date: Each contract having the expiry date which is last Thursday of the month.
Strike price: It is a list of prices where one can choose any strike price based on their contract.
Premium:To buy the Option contract one has to pay the premium.
Call option gives rights to buy to the buyer,
Put option gives rights sell to the buyer.
option writers decide the premium.
In Physical settlement product will be delivered.In Cash Settlement equivalent cash will be delivered to account.
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Hi,
Good work