TRADING INSTRUMENTS
(SPOT AND DERIVATIVE)
SPOT- deal and cash settlement happens at the SAME DAY
*profit/loss can be realized only after selling shares.

OPTION CONTRACT-get rights but no obligation.
FUTURE CONTRACT-no rights but have obligation.

FUTURES
right to buy /right to sell
can make deal
but not settlement
settlement at the maturity period.

CALL OPTION- Right to buy.
PUT OPTION-Right to sell.
HAVE RIGHT TO BUY OR SELL BUT NO OBLIGATION.

  • : deal and cash settlement happens simultaneously (at the SAME DAY) Equity is also called as asset. *profit/loss can be realized only after selling shares.
  • : In derivative instruments like future and options,the exchange will maintain refundable margin from both the parities.
  • : MARGIN- Caution deposit MTM- Mark to market PREMIUM-Money given by buyer to seller STRIKE PRICE-A strike price is the price at which a derivative contract can be bought or sold LOT SIZE- Quantity of stocks.
  • : OPTION CONTRACT-get rights but no obligation. FUTURE CONTRACT-no rights but have obligation.
  • : CALL OPTION- Right to buy. PUT OPTION-Right to sell. HAVE RIGHT TO BUY OR SELL BUT NO OBLIGATION. buy at 2500- strike price above 2500- profit below 2500-loss buyers and sellers decides the premium.
  • : right to buy /right to sell can make deal but not settlement settlement at the maturity period.
  • : *profit can be realized on day to day basis *customize trading.
  • : YES, by analysing *GLOBAL MARKETS *FII ACTIVITY *NIFTY *MARKET BREADTH
  • : PHYSICAL SETTLEMENT- asset settlement.(equity). CASH SETTLEMENT-Settlement at the last date.
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