future market . exchanges takes deposits from both buyer and seller for their contract, its refundable. this contract both buyer and sellers have rights to buy and sell, and both of them have equal risk. future contract settlement happens day to day basis. buyer and seller should honor heir commitments. the contract ends on expiry date.
option market. the buyer(call option) has rights to buy but no obligations.seller has no rights but have obligations. seller gets premium when signing the option call/put contract.
put option the buyer has right sell. once the buyer meets the strike rate. buyer gets reward. option market have expiry date. premium is decided by buyers and sellers.;
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Hi,
In a derivative market the contracts are often executed on a pre-decided settlement date. In case of futures and options, on the settlement date, the contract seller may either opt for delivery of underlying asset (which is termed as physical settlement) or may simply settle the net position through cash (i.e. cash settlement)
i got it thank you mr.naresh