What is F&O (Futures and Options)?

What is F&O (Futures and Options)?

Futures and options are financial instruments that allow traders to speculate on the price movements of an underlying asset without owning it outright. In futures contracts, the buyer is obligated to purchase the asset while the seller must deliver it at a predetermined price and date. On the other hand, options contracts give the buyer the right (but not the obligation) to buy or sell the asset at a specific price and date, with the seller required to fulfill the contract upon exercise.

Trading in futures and options involves complexity and substantial risk. Various factors, including market volatility, interest rate fluctuations, and currency exchange rates, influence these derivatives' value. Traders may face significant losses if their positions move unfavorably. 

With 5paisa, traders can make use of a platform for trading in futures and options with access to indicators, real-time charts, and other tools to make informed decisions. 



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