A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock. Put options are financial contracts that give the option buyer the right, but not the obligation, to sell a stock.

  • : Spot market is one in which stocks, commodities are traded with immediate delivery.
  • : Exchange maintains the refundable caution deposit in futures, and maintains premium in options. It regulates the derivatives.
  • : Margin money is a deposit to secure a futures position. Mark to Market (MTM) in a futures contract is the process of daily settlement of profit and losses arising due to the change in the security's market value until it is held. An option premium is the current market price of an option contract. It is thus the income received by the seller (writer) of an option contract to another party. A strike price is the set price at which a derivative contract can be bought or sold when it is exercised. Expiry date is the date when the options contract expires. In options trading, lot size represents the total number of contracts contained in one derivative security.
  • : In options the buyer/seller has the right to buy or sell, but not obligation. Whereas in futures the buyer, seller is obliged to buy or sell at or before expiry date.
  • : Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock. Put options are financial contracts that give the option buyer the right, but not the obligation, to sell a stock.
  • : A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future.
  • : If a trader can guess the future trend of the market, futures and options will benefit him.
  • : Yes NIFTY index can be traded .
  • : Cash settlement is an arrangement under which the seller in a contract chooses to transfer the net cash position instead of delivering the underlying assets whereas physical settlement can be defined as a method, under which the seller opts to go for the actual delivery of an underlying asset
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