Tagged: Expiry Date, lot size, Margin, MTM, Premium, Strike Price
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March 14, 2017 at 5:29 PM #74262
Below terms are part of future derivatives
Margin – The amount to be deposited at the time of buy/sell future contract
MTM – Mark to Market – is the accounting method that calculates the value of the stock based on the market price
Premium – Ā If buyer/seller enter in to a deal, buyer to pay premium to the receiver and buyer have the obligation to get the rights
Strike Price – Its a predetermined price where buyer/seller agreed on the contract
Expiry date – The end of the contract agreement date between buyer and seller
lot size – It means number of stock buy in one transaction
March 14, 2017 at 8:45 PM #74341Margin – The amount to be deposited to the exchange for caution deposit or the amount to be available in the account before placing a short position.
MTM – Mark To Market is a measure of the fair value of assets, liabilities, etc.Ā that can change over time.
Premium – Ā It is the total cost to buy an option trade which gives the right but no obligations.
Strike Price – It is defined as the price at which the holder of the Options can buy or sell the underlying security when the option is exercised.
Expiry Date – It is the date at which the contract of the Futures and Options gets expired.
Lot size – Standard/minimum no. of. shares for trade in the derivative market.
March 15, 2017 at 12:51 AM #74414Margin is the amount what we suppose to give to the exchange in case if we make loss then it will be debited from our margin
Where else MTM is also called as Mark to Market that means in future segment if we make any profit then it will be credited in our account
or if we make any loss then it will be debited in our account , While Premium is the amount which buy have to pay the seller in option segment
as buy is buying rights to buy or sell and he or she has to give a some amount to the seller is called Premium
Strike Price noting but the Price on which the option Ā contract has been made
Expiry Date is Validity of the Future or Option Settlement Day on which the contract has to be Executed
Lot Size is the number of shares comes in to one lot is called lot size
for an example Reliance is having a lot size of 500 shares
it means if you want to buy or sell in future segment 1 lot then you are trading 500 shares
it may very with different lot size with different company
for example SBI lot size is 1875
March 16, 2017 at 12:16 PM #74615Margin:The amount to be deposited at the time of buy/sell future contract.
MTM: MTM is the accounting method that calculates the value of the stock based on the market price.
Premium: It is the amount agreed between buyer and seller for the purchase or sale of a future contract.
Strike price: It is the predetermined price where buyer/seller agreed on the contract.
Expiry date: The end of the contract date as per the agreement between buyer and seller.
Lot size: Number of shares traded in the market.
March 21, 2017 at 12:00 PM #75102A <span class=”hvr”>margin</span> <span class=”hvr”>amountĀ </span>is the amountĀ Ā t<span class=”hvr”>he</span> <span class=”hvr”>brokerage</span>Ā lends <span class=”hvr”>the</span> <span class=”hvr”>account</span> <span class=”hvr”>holder</span> <span class=”hvr”>money,</span> <span class=”hvr”>which</span> <span class=”hvr”>the</span> <span class=”hvr”>account</span> <span class=”hvr”>holder</span> <span class=”hvr”>then</span> <span class=”hvr”>uses</span> to buy stocksĀ .
Mark to market (MTM) is a measure of theĀ valueĀ of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution’s or company’s current financial situation.
<b></b><i></i><u></u>Premium is the total cost to buy an option, which gives the holder the right but not the obligation to buy or sell at a specified strike price; (2) it’s the difference between the higher price paid for a fixed priceĀ and the security’s face amount at issue.
A strike price is the price at which a specificĀ contract can be exercised.
An expiry dateĀ is the last day tillĀ an options or future contractĀ is valid.<b>
</b>A lot represents theĀ minimum quantity that may be traded. -
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