An insight into the Indian stock market and trading

Spot / Cash market is a financial market where the financial instruments/commodities are traded for immediate delivery or delivery in the same day. … Spot market/cash market is the market where shares are directly purchased or sold in form on the same day.
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. It contrasts with a futures market, in which delivery is due at a later date. … Spot markets can operate wherever the infrastructure exists to conduct the transaction.
In futures, exchange will get the refundable margin from buyer and seller. The contract will be traded between buyer and seller on the strike price for the stocks. … The exchange plays a major role in derivative instruments like futures and options
Margin is the money borrowed from a brokerage firm to purchase an investment. It is the difference between the total value of securities held in an investor’s account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor’s account act as collateral.
The strike price is defined as the price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, strike price is also known as exercise price
What is the exercise price of a stock option?
An exercise price is the price at which the holder of a call option has the right, but not the obligation, to purchase