Futures and Options (F&O) trading involves derivative contracts that derive their value from underlying assets such as equities, indices, commodities, or currencies. Futures contracts obligate traders to buy or sell an asset at a predetermined price on a specified future date, while options provide the right—but not the obligation—to buy or sell at a fixed price before expiry.

F&O trading enables market participants to hedge existing positions, speculate on price movements, and implement advanced strategies to manage risk and enhance returns. With the use of margin trading, traders can take larger positions with relatively lower capital, making F&O suitable for experienced traders who understand market dynamics, volatility, and time decay. When used with proper analysis and risk control, futures and options trading offers flexibility, leverage, and diverse opportunities across varying market conditions.