The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. The exchange plays a major role in derivative instruments like futures and options. An option gives the buyer the right, but not the obligation, to buy (or sell) an asset at a specific price at any time during the life of the contract.
A futures contract gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver that asset at a specific future date unless the holder’s position is closed prior to expiration. A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock. The seller gets the Premium amount for signing the call/put option contract, where the premium is traded between buyer and seller. Futures/ call/put options are required for traders to customize trading. In the derivative market, the entire stock price is not required and the only margin needs to be paid.

1 Comment
  1. Naresh 2 years ago

    Hi,
    Your work is really good.

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