spot/cash market is a place where trading happen on the same day and settlement too
Exchange plays important role in derivative market as it takes margin both d parties in future for settlement and premium in options
Margin is refundable paid by buyer and seller to exchange for signing the contract
MTM is mark to market
strike price mentioned in the optional contract and settlement happen at that price
expiry is the maturity date mentioned in the contract
lot size is the number of shares traded