Future and Options – It is a derivative product. It is a provision to trade based on the future prices. These are also traded to minimize the associated risk of stocks in hand due to Future price of stock.
Options – call/put buyers have rights but no obligations. Buyers or call and puts get benefited when price goes up or below the strike prices of contract.
Sellers of options gets benefited only when stock close at same or below the strike price in case of call option.
, , Futures and Options, FNO
