the future is a contract in which the buy or sell to be compulsorily executed in date of the contract. for future contract the margin amount to be depodited with the exchange and mtm takes place at each day. in option contract there is no obligation in buy or sell of the contract they have rights to buy or sell the contract then the price goes above or below the strike price , for option contract to be executed there is a premium amount to be paid which is decided by the seller according to the trend of the market

  • : in spot market the settlement happens immediately by the immediate payment of cash and delivery of equity or commodity
  • : the exchange plays a role in collecting the caution deposit from the buyer and seller and settles the trade each at the end of the day till the contract goes invalid which is known as mark to margin
  • : margin is the caution deposit of buyer and seller who executes a deal at future market to the exchange . mtm is known as mark to margin which happens each day and the settlement happens at the end of the day either to the buyer or seller till the validity of the future contract. premium is the amount paid by the buyer or seller in the option market . the strike price is the price at which above or below the deal is executed according to the contract. expiry date is the validity of the contract after which the contract is invalid.
  • : in future contract the deal that is signed should definitely be executed on the date . it is the obligation and right of the buyer and obligation and right of the seller to buy and sell of the contract. but in option contract the buyer only have the right to buy and he doesnt have any obligation to buy the contract he buys only the price is above the strike price.
  • : call option is the option to buy the contract when the price goes above the strike price . put option is the option to sell the contract when the price goes below the strike price .the premium is decided by the seller who sells the contract according to the trend of the market
  • : : A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity at the future decided date .
  • : a trader needs a future call put to execute the trade in upcoming days when he is sure that the price of the share is going to increase or decrease in upcoming days .
  • : yes it is possible to trade in nifty by using future option and mutual funds
  • : Under the cash settlement method, the contract seller does not deliver the underlying asset but transfers the net cash position. in physical settlement the contractor have to settle the underlying asset upon which the rate it is traded
1 Comment
  1. Naresh 6 months ago

    Nice work! we really appreciate your efforts.

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