Spot/ Cash market is the place whether the deal happens followed by the settlement on the same day
Margin: The deposit amount paid to exchange by both buyer and seller to sign the future contract, which is refundable.
MTM – Mark to Market : Day to day leveling of price movement. Profit/loss will be realised on daily basis.
Premium – The money paid to seller of the contract for signing the option contract.
Strike Price- The agreed price printed in the option contract.
Expiry Date- The maturity date/ the validity date mentioned in the contract.
Lot size – Number of shared covered in the contract.
Call / Put option is a financial contract between two parties, the buyer and the seller. The buyer has the rights to buy the underlying asset at the expiry date however do not have any obligation. The seller of the contract has the obligation to exercise the contract if the buyer decides to do so.
