About

• Futures and options (F&O) are derivative products in the stock market. Since they derive their values from an underlying asset, like shares or commodities, they are called derivatives.
• They are agreements to buy and sell assets in future at certain princes and in certain conditions. 
• Although both options and futures allow an investor to buy an investment at a specific price by a specific date, one works very differently from the other. 
• An options contract gives an investor the right, but not the obligation, to buy or sell but a futures contract requires a buyer to purchase shares and a seller to sell them on a specific future date.