Kinder Garden 2 – Basics of Futures and Options

The trading takes place between the buyer and seller and settlement happened at the spot consider to be spot or cash market. And the derivative market the future and options are there to trade high amount of shares with minimal capital and there is a dead line for the contract what we choose. In option contract buyer have right to buy but not obligations while in future buyers and seller have right to buy and obligation is also.In physical settlement buyers gets the assets . In cash settlement sellers gets cash.