Impact cost is the cost that a buyer or seller of stocks incurs while executing a transaction due to the prevailing liquidity condition on the counter. Lower the liquidity, higher will be the impact cost.

The impact cost is not reflected in the contract notes.

A long position in any option can be closed by selling that option and not in any other way.

So a  long position in a PUT option can be closed by selling that PUT option.

CALL OPTION : An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

It may help you to remember that a call option gives you the right to "call in" (buy) an asset. You profit on a call when the underlying asset increases in price.

If all other factors affecting an option’s price remain the same, the time value portion of an option’s premium will decrease with the passage of time. This is also known as time decay. Options are known as ‘wasting assets’, due to this property where the time value gradually falls to zero. 

Any fall in premium is advantageous to the option seller.

All modern stock exchanges have highly developed online surveillance sytems to monitor the volumes / position and prices of all listed products and also check any unusual activity etc. in them.

Mr. Kailash will make a loss if the price of ABC Industries Ltd. falls. His loss bearing capacity is Rs 4000. Therefore 4000 / 200 shares = Rs 20.

So if the shares fall by Rs 20, he will make a loss of Rs 4000.

850 - 20 = 830. Therefore 830 will be his stoploss price and he will place a stoploss order at Rs 830.

Initial margin requirements are based on 99% value at risk over a one day time horizon.

The prices are exclusive ie. with out any brokerage. Brokerage is added later and is reflected in the contract note.

Arbitrage means buying a security in one market while simultaneously selling the same security in a different market, to benefit from price differential.

Clearing Corporation or the  Clearing House is responsible for clearing and settlement of all trades executed on the F&O Segment of the Exchange.

Clearing Corporation acts as a legal counterparty to all trades on this segment and also guarantees their financial settlement.

The Clearing and Settlement process comprises of three main activities, viz., Clearing, Settlement and Risk Management.