Basics to become PRO trader in F & O – 1

Futures and contracts(fno) is derivative market. in F & O we need to understand movement of underlying assets through prior date its more about understanding market or stock though technical or fundamental analysis. A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future.The underlying asset in a futures contract could be commodities, stocks, currencies.there are two types of Options – Call and Put option
For call option buyer has rights to Buy but no obligations and seller has rights his profit is limited to premium value he received.Call Option buyer earns only if price goes above to Strike price + premium he paid
For Put option buyer have Rights to sell but have no obligations. Put option seller also limits his profit by earning Premium. Put option buyer makes money only if price goes below Strike Price – Premium paid
The option’s premium is constantly changing, depending on the price of the underlying asset and the amount of time left in the contract. Option buyers and seller bid and finalize the premium amount.