Spot market is when the buyers and sellers leave the transaction with shares and cash respectively.
Margin – When the trader has only Rs.10,000 but the broker gives him access to capital worth Rs.1,00,000 (10x) to buy stocks for a fee
MTM – Market to Market is the process by which the exchange ensures that both parties of a futures contract are levelled with their side of the contract as the price of a good / share fluctuates
Premium – The reward for the risk taken by the seller of the Call option and Put option
Strike price – The price at which the holder of an option, has the option but not obligation to buy or sell
Yes, NIFTY can be traded as a derivative instrument. When we enter into a futures contract with a counter party when NIFTY is at 1000 points, and the futures price is also 1000, every time NIFTY goes down, thanks to MTM, I have to pay the difference and the CP gets the difference, every time NIFTY goes up, I get the difference from the CP
Hope this helps you to recollect the basics