derivities trading

Spot market/cash market is the market where shares are directly purchased or sold in form on the same day.Exchange acts as authority between buyers and sellers in the derivative markets. If any grevience happens then it is responsible for that and it solve the problem with help of brokars .Margin is amount we pay as a caution deposit.MTM means Mark to market, the fair value of our share at the end of day. Strike price is the agreement price in the derivative market. Expiry date is the ending date of the derivative contracts. Lot size is the number of shares or contacts bought at a single transaction.In options contract, only the buyer has the right to buy or sell but in futures both the buyer and seller has the rights.Futures contracts are either cash settled or physically delivered. Futures contracts that are physically delivered require the holder to either produce the commodity or take delivery from the exchange. but it has an option to cash settle.