Basics of Futures and Options

Margin is the amount we give to the exchange for the positions we take. MTM : Marked to market which is the daily profit or loss to be settled by the trader, Premium: Amount to be paid or received while buying or selling options; Strike price : The price in which the options are available; Expiry date is the date ehen the contract closes; Lot size is the quantity fixed by the exchange for the particular Index or share for trading in the derivative segment