The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument,In derivative market exchange create the weekly, monthly contracts in derivative counter and collect the caution deposit and premium amounts from the traders, also to confirm the contract ending smoothly at the end of the each trading day exchange will adjust the premium and caution deposit at mark to the market.to avoid the huge loss in cash market trader need the futures&options for hedging purpose.
, , Futures and Options, Cash Market, COUNTER PARTY RISK, Future, MTM, Option, physical and cash settlement, premium
