Similarly , if you agree to deliver 100 bushels of wheat to someone at a later date for a fixed price , you are going short on the wheat . All their trades are settled by by undertaking an opposite trade by the end of the day .Margin traders : Many speculators trade using of the payment mechanism unique to the derivative markets .When you trade in derivative products , you are not required to pay the total value of your position up front . Instead , you are only required to deposit only a fraction of the total sum called margin .The strategies applicable in derivatives are completely different from that of the stock market . The margin amount can not be withdrawn until the trade is settled .
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