What is the role of exchange in derivative instruments?

[Rajarathinam]

Exchange is responsible for execution of deal on the settlement date. They will collect caution deposit from both buyer and seller to minimise the risk.

[sivaranjani]

Exchange’s role is very important in derivative instruments. It makes sure that both the buyer and seller honour their contract. If any party breaches, the exchange would settle their dispute using the margin paid by the defaulted party or by his broker’s deposit

[Geena]

Exchange it is regulatory between the buyer and seller in derivative instruments.

[Dinesh]

In the case of Derrivative Instruments, the exchange will mark the buyers/sellers to the market upon a daily price variation in the particular agreed stock. At any cost, if any one of them wish to exit from the contract, the exchange will full fill the place through other buyers/sellers marking the margin starting from that day.

[Praveen Kumar Ramachandran]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Exchange it is regulatory between the buyer and seller and responsible of all settlements in derivative instruments. </span>

[Author]

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