Tagged: Expiry Date, lot size, Margin, MTM, Premium, Strike Price
- This topic has 327 replies, 320 voices, and was last updated 2 years, 8 months ago by Divya E R.
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March 4, 2017 at 11:26 AM #71712
Margin: This is the security deposit paid for the futures contract in case you default.
MTM: IN futures instrument depending on the price movement you will be credited or debited the difference in price everyday. This is called marked to market (MTM).
Premium: In case of options, the sellers have no rights but only obligations, so buyers pay a premium to make the seller sign the contract.
Strike price: In options, this is the price above which a call option buyer makes money or the put option buyer loses money.
Expiry date; This is the settlement date for the cash settlement.
Lot size: Fixed number of stocks for which you have a right to trade in case of derivative instruments. This depends on the company.
March 5, 2017 at 7:53 PM #71968Margin – caution deposit for future contract
MTM (market to market) -the profit or loss realised on day to day basis
Premium – the amount paid by the buyer to the seller to sign the contract
Strike price – the fixed price in the put and call option, where the call buyers gain money and put buyers loose money
Expiry date – maturity date or settlement date in future market
lot size – minimum no of share in the derivative market
March 10, 2017 at 4:31 PM #73088Margin- it is the amount paid by both the buyers and sellers of a futures contract to the exchange in order to sign the contract.
MTM(mark to market)-it is the daily settlement done by the exchange on a futures contract in order to match with the current market price.
Premium- it is the money paid to the seller by the buyer in an Options contract as a security for the seller to sign the contract.
Strike price- it is the price that is fixed in an Option contract on which the buyer has the rights to buy with no obligations-for call option and for put option-the buyer has the rights to sell at that price with no obligation.
Expiry date- it is the date on which the contract expires or has to be executed both in Futures and Options.
Lot size- it is the number of assets(stocks,commodities,equities) that is specified in the contract in order to constitute a single lot.
March 11, 2017 at 9:44 AM #73230Margin- Caution deposit paid by buyers and sellers in case of Futures / Options Market
MTM-It is the process of valuing assets covered in a futures contract at the end of each trading day and then profit and loss is settled.
Premium-The amount agreed upon between buyer and seller for the purchase or sale of a futures contract
Strike Price-It is the price at which a call or put option can be purchased or sold in futurres market.
Expiry date-It is the date at which the futures contract expires
Lot size-Standard quantity of financial securities for trade as set out by the exchange.
March 13, 2017 at 7:01 PM #74043Margin – Amount required to trade in futures market.
Premium – Money paid by the buyer to the seller in Options market.
Strike Price – Price at which both buyers of options strike deal.
Expiry Date – Expiry date of the futures or options contract.
Lot Size – Number of shares traded in futures or options market.
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