Viewing 5 posts - 276 through 280 (of 327 total)
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  • #68660
    Divya
    Participant
    Rank: Level 3

    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.

    #68883
    Parthasarathy J
    Participant
    Rank: Level 2

    <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

    </div>

    #68907
    Anitha Ramesh
    Participant
    Rank: Level 5

    Margin: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.

    #69016
    Geena
    Participant
    Rank: Level 2

    Margin          : 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

     

    #69590
    Dipakk Mehta
    Participant
    Rank: Level 3

    margin 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

Viewing 5 posts - 276 through 280 (of 327 total)
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