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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.
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.
In derivaties market the exchange is middle men who settles the amount on the end of each day has to whom it has to be settled.
The exchange plays a major role in derivative instruments like futures and options.
Futures are standardized contracts that trade on an exchange. Traders use a futures contract to hedge their risk or speculate on the price of an underlying asset. The parties involved are obligated to fulfill a commitment to buy or sell the underlying asset.
An option is nothing but an agreement between two parties to buy or sell an asset at a predetermined future date for a specific price.
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