EQSIS PRO

Future and Options Basics

Future contracts enables the buying and selling of stocks on a future date at an agreed price. Through this contract buyer gets rights to buy and seller gets rights to sell on a future date.In option trading buyer has rights to buy and no obligations. And buyer has to pays premium to the seller to contract get signed.
A futures contract gives the parties the obligation to buy or sell the stock at a specific future date.Margin is a collateral that collects from the trader to buy the share in the futures
Mark -to-market refers to accounting the fair value the asset or liability based on current market price
Premium is the money paid by the buyer of the option to contract signed.

Exit mobile version