Spot market is where the buying and selling of stocks happen on spot.Derivative market is where the buying and selling happens on the underlying asset of the stock over a given period of time.The initial amount to required to get in to futures contract is known as margin amount.call option is taken when the trader expects the price of stocks will rise and put option is bought when the stock price goes down.It is possible to trade in nifty index using derivatives that is nifty futures and nifty options.