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20 October 2017

Trading Terminology

Buy Open

Means a buy transaction, which will have the effect of creating or increasing a long position.

Clearing Member

Clearing Member means a Member of the Clearing Corporation.

Closing buy transaction

Means a buy transaction, which will have the effect of partly or fully offsetting a short position.

Closing sell transaction

Means a sell transaction, which will have the effect of partly or fully offsetting a long position.

Constituent

A constituent means a person, on whose instructions and, on whose account, the Trading Member enters into any contract for the purchase or sale of any security or does any act in relation thereto.

Contract Month

Contract month means the month in which a contract is required to be finally settled.

Derivatives Contract

A contract that derives its value from the prices of underlying securities.

Expiration Day

The day on which the final settlement obligation are determined in a Derivatives Contract.

Futures Contract

Means a firm contractual agreement to buy or sell the underlying security in the future.

Last Trading Day

Means the day up to and on which a Derivatives Contract is available for trading.

Long Position

Long Position in a Derivatives contract means outstanding purchase obligations in respect of a permitted derivatives contract at any point of time.

Open Position

Open position means the sum of long and short positions of the Member and his constituent in any or all of the Derivatives Contracts outstanding with the Clearing Corporation.

Open Interest

Open Interest means the total number of Derivatives Contracts of an underlying security that have not yet been offset and closed by an opposite Derivatives transaction nor fulfilled by delivery of the cash or underlying security or option exercise. For calculation of Open Interest only one side (either the long or the short) of the Derivatives Contract is counted.

Options Contract

Options Contract is a type of Derivatives Contract, which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying security at a predetermined price within or at end of a specified period. The option contract that gives a right to buy is called a Call Option and the option contract that gives a right to sell is called a Put Option.

Option Holder

Option Holder means a Trading Member who is the buyer of the Options Contracts.

Option Writer

Option Writer means a Trading Member who is the seller of the Options Contracts.

Outstanding Obligation

Means an obligation which has neither been closed out nor been settled.

Permitted Derivatives Contract

Permitted Derivatives Contract is a derivative contract, which is permitted to be traded on the Futures & Options segment of the Exchange.

Regular lot / Market Lot

Means the number of units that can be bought or sold in a specified derivatives contract and it is also termed as Contract Multiplier.

Risk Disclosure Document

Refers to the document to be issued to all potential investors at the time of registration for disclosure of the risks inherent to derivatives.

Settlement Date

Means the date on which the settlements of outstanding obligations in a permitted Derivatives contract are required to be settled.

Sell Open

Means a sell transaction, which will have the effect of creating or increasing a short position.

Short Position

Short position in a derivatives contract means outstanding sell obligations with respect to a permitted derivatives contract at any point of time.

Trading cycle

Trading cycle means the period during which the derivatives contract will be available for trading.

Trading Member

Trading Member is a member of Derivative Exchange.

Trading cum Clearing Member

Means Member of Derivatives Exchange as well as its Clearing Corporation.

Trade Type

Trade type is the type of trade as may be permitted by the F&O Segment of the Exchange from time to time for each Market Type.

Underlying Securities

Means a security with reference to which a derivatives contract is permitted to be traded on the Futures & Options segment of the Exchange, periodically.
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