Basics of Futures and Options

In spot market the deal is made and executed in same day. In F&O the deal is made and it will be execute in future when mentioned in the contract between buyers and sellers. F&O has the advantages like small investment is enough for to do so, leverage is high, risk can be reduce by another derivative product. In Future the buyers has the right to buy and sellers has the right to sell and both are has the obligation. In option the buyers has the right to buy/sell with out obligation but the buyers has to pay the premium to the sellers. put option buyers make the money when the price goes below to the strike price and the call option buyers make the money when the strike price goes beyond the strike price.