Inputs for SPOT & CASH market
Understanding Derivatives Instruments for trading
Future contracts , rights & obligation for buyer & seller , margin , MTM ,expiry
Options contract . rights & obligation for buyer & seller , strike price , Premium, time value
Use of derivative instruments for trading & their utilisation as per strategy & scenario
.Difference between Physical & cash settlement
, , Futures and Options, at the money, call, Cash Market, Cash Settlement, derivative market, Expiry, futures contract, in the money, Margin, MTM, OBLIGATION, options, out of money, physical settlement, premium, put, rights, Spot markets, strike price, time value
Hi,
Answering to your question 1 :: role of exchange in derivative instruments, please elaborate ??
Exchange Introduced Derivative Instruments, Futures & options. Exchange forms the Guidelines for the Derivative Segment.
1. In futures, exchange will get the refundable margin from buyer and seller & takes care Mark To Market in daily basis.
2. In options, exchange will settle the agreed premium from buyer of the contract to seller of the contract & takes care Mark To Market in daily basis.