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Margin: It is the caution deposit made to the broker by the trader, which will be utilized by the exchange in case of emergency
MTM: Market to Market is where cash settlement is based on a day to day basis.
Premium: THe amount paid by the buyer to the seller to sign the contract
Strike Price: The price at which the buyer and seller agree to trade in the future date
Expiry Date: It is the contract expiry date and the settlement has to be made on that day
Lot Size: It is the quantity of shares or the trade volume.
margin is the percentage of amount you need to trade in future market which is also called caution deposit.
MTM is based on day to day price movement settlement is done on your trading account.
premium is the amount on which the seller agrees to sign the contract for the buyer since the seller is not going to get any profit from the trade other than the premium amount.
strike price is the price on which the buyer and seller agrees to make the option contract. if the market price goes above the strike price buyer will get profit if he is a call option buyer. If the market price goes below the strike price buyer will get profit if he is a put option buyer.
expiry date is maturity date on which the contract gets matured.
lot size comes in derivative market. Since the trade is going to happen in future, deal is made on lot basis. (bulk quantity)
Margin :- The caution deposit you pay to the exchange by the traders.
MTM :- Market to Market, the settlement is done on the daily basis.
Premium :- The amount agreed by the seller to sign the options contract.
Strike Price :- The buyer & seller agrees the future price in the options contract. If the price goes above (call) / below (put) the strike price the buyer tends to make profit.
Expiry Date :- Its the expiry date of the contracts. The settlement has to be done on this date.
Lot size :- its the fixed quantity of shares, the buyer has to buy in the futures & options
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Margin :- The caution deposit you pay to the exchange by the traders.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>MTM :- Mark to Market, the settlement is done on the daily basis based on the market price of the share.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Premium :- The amount agreed by the seller to sign the options contract.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Strike Price :- The buyer & seller agrees the future price in the options contract. If the price goes above (call) / below (put) the strike price the buyer tends to make profit.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Expiry Date :- The date of execution of the contract.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Lot size :- its the fixed quantity of contracts, the buyer has to buy in the futures & options</p>Margin– caution deposit made to the exchange
MTM– Mark to Margin based on the day to day price movement settlement is done.
Premium– Amount which is paid to the seller by the buyer to get the contract to signed.
Expiry date — The last date in which the contract gets void and settlement has to be done.
Strike price — The price amount which trigger the profit and loss for the buyer/seller.
Lot size–Fixed quantity of shares that the buy have to buy in futures and option
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