This topic contains 323 replies, has 322 voices, and was last updated by  Divya E R 8 months, 1 week ago.

  • Author
    Posts
  • #5230
     EQSIS 
    Keymaster

    What is the role of exchange in derivative instruments?

    #5672
     Abirami Duraisamy 
    Participant
    Rank: Level 5

    In futures, exchange will get the refundable margin from buyer and seller. The contract will be traded between buyer and seller on the strike price for the stocks. Once the contract is agreed, exchange will take care of mark to market on daily basis until the end of the contract.

    In options, exchange will execute the trading of the premium between buyer and seller and once agreed, exchange will take care of daily leveling, but the buyer of the contract do not have any obligations.

    #5768
     R.Durga Prasad 
    Participant
    Rank: Level 4

    The exchange plays a major role in derivative instruments like futures and options.

    In futures exchange will maintain refundable margin from both the parties ,and manages the trade.

    In options it deals with the premium for the deal and executes it.

    #5958
     Padmavathi Sukumar 
    Participant
    Rank: Level 3

    Exchange plays the role of mediator in derivative instruments. In Futures the exchange collects the margin from both the buyer and seller, does the mark to market and on the expiry date makes the settlement for the deal happen. In options exchange settles the premium deal between the buyer and seller, does the mark to market on a daily basis and takes care of the final settlement

    #5965
     bhavani 
    Participant
    Rank: Level 7

    The exchange creates the futures and the options instruments available for the traders with various expiry dates. It guides and protects the buyers and sellers with certain rules and regulations.

Viewing 5 posts - 1 through 5 (of 324 total)

You must be logged in to reply to this topic.

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

©2022 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

Log in with your credentials

Forgot your details?