F&O is a product of an idea which deals with betting on the shares of the company on a future date without actually owning the shares. The rules of the game is framed around it for the proper implementation of the idea, which involves obligations between the buyer and the seller, the strike price at which they decide upon to trade on a future date.
F&O – A bet on the future
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Hi sir,
This will be the appropriate answers for the following
Margin – The Refundable deposit amount paid to exchange by both buyer and seller as a caution deposit.
Premium – The money paid to option seller of the contract for signing the option contract.
Strike Price- The price at which the contract is signed. Expiry Date – End date of the contract i.e. The maturity date or the validity date mentioned in the contract.
Thanks Vignesh !