All you need to know about futures and options trading
Updated: 17 Jul 2022, 09:38 AM IST
TL;DR.The futures and options (F&O) are derivative instruments that derive their value from the underlying asset. They are used primarily to hedge an investment against losses. Read further to know how they work.
Under F&O trading, the investor doesn’t necessarily have to buy the underlying asset but can gain from its price fluctuations in the market.