Future a contract to be executed in futures as signed. Future contract buyers has rights to buy assets from seller and future contract seller has rights to Sell the assets to buyer of this contract.Call Option- A contract -buyer get the Rights to buy but no obligations. Put Option – A contract- buyer get the rights to sell but no obligations. Seller decides the premium. Trade need futures/ call/ put to control their loss or profit. Since market is unpredictable we can’t only trade in one type of order. For future and option Obligation is difference. Option contract has rights to buy/sell assets from the seller of the contract. Future contract buyers has rights to buy assets from seller and future contract seller has rights to Sell the assets to buyer of this contract.
Shobana, , Futures and Options, Future and Option contract, Margin / MTM / Premium / Strike Price / Expiry Date / lot size