Recently Active Members
feel free to call us +919500077790 info@eqsis.com
The derivative instruments are Index Futures Index Contracts. Nifty and Bank Nifty in these case and Stock Futures and Stock options.
In derivaties market the exchange is middle men who settles the amount on the end of each day has to whom it has to be settled.
Margin : A margin is collateral that the holder of a financial instrument hs to deposit to cover some or all of the the credit risk of their counter party ( broker/exchange)
MTM : It is the abbreviation of Marked to Market. The positions in the futures contracts for each member is marked-to-market to the daily settlement price of the futures contracts at the end of each trade day.
Premium : It is money paid by the option buyer to buy either call/put option. The seller of the option contract collects the premium to sell the rights to the buyer of the call/put option.
Strike Price : The strike price is defined as the price at which the holder of an option contract can buy (call option) or sell (Put option) of the underlying asset when the option is exercised.
Expiry Date : It is the last day that an options or future contract is valid.
Lot Size : It refers to the number of underlying shares in one contract. In other words, it is the quantity in which an investor in the market can trade in the Derivative of particular stocks.
Future contract has the only right to either buy or sell. in option contract the premium amount is low and the traders can buy both the call option and put option.
The call option is the contract where the buyer gets the rights to buy the stock and the put option denotes the buyer has the sell the stock. the premium is decided by the buyer and seller of the particular contract.
EQSIS, A Stock Market Research Firm
Knowledge is Power. Here you may start from basics, get support while practicing and evolve as active analyst, later you can become a pro