Spot market, both the deal and settlement will happen on the same day. In derivatives market, deal will happen now and settlement will happen on the maturity date. The derivative market is enable customization to the traders. Also indexes can be traded only in the derivative markets.
Ramesh N, , Futures and Options, Call / Put options / Strike price, Call option, FUTURES AND OPTIONS, Margin, MTM, premium
Hi Ramesh,
I had a doubt on your MTM Answer (Strike price Vs Current price) , I will check it and let you know if my understanding is wrong.
Cool Post. Appreciate.
Thanks Allen for the comment. Please let me know if my understanding is wrong.