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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Can the options premium received be used to open new F&O positions?
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Who can do F&O Trading?
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What is Physical Settlement in Equity Derivatives (Futures & Options) and How to Place Order in 5paisa?
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