STEP TOWARDS FUTURE AND OPTIONS

SPOT MARKET IS THE PLACE WHERE THE BUY/SELL TAKES PLACE QUICKLY,
EXCHANGE PLAYS MAJOR ROLE IN DERIVATIVE INSTRUMENTS,
MARGIN- IT IS A SECURITY DEPOSIT PAID TO EXCHANGE FOR EXECUTING ANY FUTURE CONTRACT
MTM-MARK TO MARKET ,IN FUTURE TRADING THE SETTLEMENT IS DONE ON DAILY BASIS FOR UNDERLYING PURCHASED CONTRACT
PREMIUM-IS THE AMOUNT WHICH IS PAID BY THE BUYER TO MAKE SELLER AGREE TO CONTRACT
STRIKE PRICE-IS THE COMMON PRICE IN WHICH THE BUYER AND SELLER HAVE DECIDED TO MAKE A TRADE
EXPIRY DATE -IT IS NOTHING BUT THE MATURITY DATE GIVEN TO THE CONTRACT
LOT SIZE-QUANTITY OF SHARE TO BE TRADED