Future and options are part of derivative markets. In future both buyer and seller have rights to buy/sell and obliged to execute contract wheres in option buyer has the right to buy/sell(call/put) with no obligation and sellet pays premium of the contract. Settlement happens on the future date in F&O whereas in spot market its done on the same day. Index can be traded in F&O basis lot size. Traders need F&O to hedge and maximise the profits

1 Comment
  1. EQSIS 6 years ago

    Good work maam

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