Tagged: Expiry Date, lot size, Margin, MTM, Premium, Strike Price
- This topic has 327 replies, 320 voices, and was last updated 2 years, 7 months ago by Divya E R.
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February 21, 2017 at 1:14 PM #68660
Margin – is the amount paid by both buyer and seller when signing a future contract. It is a kind of deposit
MTM – is Mark to Market, which is done at the end of the day for all future contracts based on the closing market price of the share in future contract
Premium – is the amount paid by the buyer to seller when signing a Call/Put option contract
Strike Price – is the share price mentioned in future and option contracts. The settlement should be made at this price on the final day whatever the market price may be
Expiry Date – is the date wh.en settlement should happen for Future and Option contracts. The contract is no more valid beyond this date and a new contract need to be signed for future trading
Lot Size – is the number of shares that is being traded.February 21, 2017 at 10:19 PM #68883<div class=”bbp-reply-content”>
Margin is the caution deposit that is paid to the stock exchanges while trading in the futures  to ensure the violation of the contract doesn’t happen from the either sides
MTM is known as Market to Market which means that the profit and loss in a future market is settled on a day to day basis from the caution deposit(Margin).
Premium is the upfront price buyers pays to the sellers for signing the contract without any obligations in the options market
Strike Price is the triggering price which is mentioned in the contract
Expiry date is the maturity date at which the trade has to be settled.
Lot size is generally there in options and future market where an investor needs to purchase/sell
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February 21, 2017 at 10:42 PM #68907Margin:It is the caution deposit needed to be paid to the exchange in ” future ” market.
MTM:The change  in price of the stock will be settled to the buyer /seller on day to day basis.
Premium:It is the amount paid to the seller of the contract in “call/put” options.
Strike price:It is the price amount,the buyer will get amount if the stock hits the strike price.
Expiry date:It is the date till which the contract is valid.The settlement will be done on that date.
Lot size:“N” no. of shares  form  a lot.
February 22, 2017 at 2:35 PM #69016Margin      : Deposit  amount paid by both buyer and seller to their  respective brokers in future option.
MTM       : Mark to  market  is a measure of fair value of accounts that can change over time
Premium    : An amount to be paid for a contract in case of buying options
Strike Price  :In the option contract
February 24, 2017 at 2:08 AM #69590margin is the caution deposit that has to be paid by buyers and sellers in futures market.
MTM is market to market, i.e settling the profit and loss on day to day basis until the expiry date.
premium is the amount that has to be paid by the buyer of options contract to the seller to make him sign the contract
strike price is the mentioned price of the contract.
expiry date is the maturity date where the settlement is done
lot size is the number of shares
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