What are Futures and Options (F&O) ?

Modified on Thu, 3 Oct at 4:04 PM

Futures 


A futures contract obligates the buyer to purchase a specific asset, and the seller to sell and deliver that asset, at a specific future date. They are standardized contracts traded on exchanges, and the terms of the contract, such as the price, quantity, and delivery date, are predetermined. 


Options 

An option gives the buyer the right, but not the obligation, to buy (call option) or sell (put option) an asset at a specific price at any time during the life of the contract. Options can be traded on various underlying assets, including stocks, stock market indices, and futures contracts.


Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article