The settlements done by both sellers and buyers on the same day are called the spot or cash market. Cash settlement is a settlement method used in certain futures contracts where you don’t have to make or take delivery of the underlying asset at the expiration of the futures contract. Mostly cash settlement is for futures contract that has non-physical underlying asset. In future market, the exchanges collect caution deposit and premium in options from the buyers. Since buyers are only get benefited in this segment, the sellers interest is also protected by collecting deposits or premiums. The terms of Margin / MTM / Premium / Strike Price / Expiry Date /Lot Size are used in derivative markets. The difference between options and futures lies in the obligations the buyers and sellers put on A call option allows buying an option, whereas Put option allows selling an option.A futures contract is between two parties where they agree to buy and sell a particular quantity at a predetermined price and at a specified date in future .In a derivative market a trader needs futures/call/put as it encourages traders to trade. Nifty can be bought in FUTURE & OPTIONS segment, also known as derivatives, which mean the value is depended on some other underlying asset.