Futures and Options

Recent trading losses in Futures and Options segment have caught many investors in debt spiral.

About Futures and Options (F&O)

  • F&O contracts are derivatives that allow investors to buy, sell, or lock in price of an underlying asset like stock, index, or commodity at a future date without actually owning it.
  • Futures Contracts: Futures allow traders to lock in a future price for a commodity, effectively insulating them from price fluctuations.
  • Options Contracts: Options provide the right, but not the obligation, to buy or sell a commodity at a specific price.
  • Example: An airline might purchase call options on jet fuel. If fuel ....
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