FUTURE contract is obligatory to both buyer and seller
OPTION contract is obligatory toseller only.
CALL OPTION – strike price at BULLISH trade, price fixed at more than on date price
PUT OPTION – strike price at BEARISH trade
MARGIN = caution deposit for FNO
PREMIUM = non refundable money paid by seller in OPTION mkt to get a contract.
MTM =MARKED TO MARKET = in future contract setllement is done on daily basis on the market value