Difference between equity and derivatives

#2
Hi,

You can buy/sell equity(stocks) in any number and need to pay full amount. Derivative means you can trade in fixed number (lots) depends on companies and need to pay margin, usually 5% to total cost.
 
#3
Equity is financial term which is referred to as a financial tool to invite investors to invest funds in a company and share the owner ship of the company to the amount of investment they have made.