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Margin – Deposit with broker towards F&O
MTM – Daily differential price settlement with broker w.r.t. Futures
Premium – Agreed upon amount to be paid to the seller of the contract by the buyer on option settlement date
strike price – Options – Price fixed for the trade of a stock on the said date
Expiry – settlement day for futures & options – last thursday of the month
lot size – no. of shares traded
Margin is a caution deposit
MTM is a Mark to Market, settling the gains & losses on every day closing price basis
Premium is amount paid to seller to sign the contract
Lot is bulk quantity of shares
Strike price is the predetermined agreed price of both seller & buyer
Expiry date is the last settlement date of the contract
Margin is a caution deposit
Margin – margin is the extra caution deposit the broker takes.
MTM – Mark to market means the contract are settled by the the exchanges on a daily basis.
Premium- how much extra are you willing to pay from the strike price for a contract.
Strike Price – It is the predicted price you bet the stock would move above for a series.
Expiry Date – It is the last thurstday of every month when the contract expires.
Margin- Refers to the collateral given by the buyer to the holder to cover some or all of the credit risk given by the holder.In options it is the amount decided by the exchange to buy a options contract in a certain Lot size .
MTM-Mark to Market is an assessment of the current assets and liabilities of a company . It shows the current market value of the company or the NAV of a mutual fund or the price of a share at close time of the market.
Premium- Has various meanings . It is the sum amount collected by the insurer to bear the risk of a payout in case should such an event occur that requires coverage .This is applicable in vehicle , or health or general insurance. In options ,premium is the total price to buy an option but not an obligation to buy or sell an instrument at a specified strike price .
Strike Price -The strike price of an option is the price at which the owner of an option can buy or sell a commodity or security.It is also called as the exercise price.
Expiry date – derivative contracts are time bound and they have a validity period . Till the Expiry date the option or futures contract can be exercised and after this it is invalid. In India the expiry date of any derivative is the last thursday of the specified month.
Lot size – In share market it refers to the number of shares that can be traded . NSE made it possible to trade even one share and multiples there of.
In options market the exchange decides the lot size. So to buy an option it is the market price of the share multiplied by the lot size. To the total value again specifies the margin money from 10% to upto 40 % depending on the volatility .
Margin – It is the caution deposit paid to the Exchange(or the Enabler) for a trader to enter into a contract. It is used in the case of counter party default.
MTM – Mark to Market. It denotes that the Ledger balance(difference between current market price and the strike price (in options) or the speculated price(in Futures)) will be neutralized by the Exchange (or the Enabler) on a daily basis.
Premium – In Options, where the buyer has no obligations, Premium is paid to the seller to bear the risk of payout situation.
Strike price – In Options, Strike price is the speculated price of an asset mutually agreed between the traders(buyers and sellers).
Expiry date – Last settlement day of the contract after which the contract becomes invalid.
Lot – Quantity. In stock market, it is the number of shares.
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