Understand F&O.
Trade With Discipline.
Explore Futures & Options with a structured approach
to market analysis, strategy building, position
management and risk awareness.
Explore F&O →
Understand Risk
Derivatives Market
Futures • Options
Strategy First
Risk • Position • Discipline
F&O MARKET VIEW
MARKET VIEW
FUT
INDEX FUTURES
DERIVATIVES
24,850
+1.24%
CALL OPTION
CE
PUT OPTION
PE
Derivatives. Strategies. Opportunities.
Futures & Options are derivative instruments whose
value is linked to an underlying asset such as a
stock or market index. They can be used for trading,
hedging and other market strategies, but involve
significant risk.
F
Futures
Understand futures contracts and how traders use
them to take positions based on their market view.
O
Options
Explore options contracts and understand the role
of calls, puts, premiums and expiry.
◈
Strategy
Build a structured approach based on market
conditions, objectives and risk tolerance.
◉
Risk Management
Understand position sizing, margin requirements,
volatility and potential downside before trading.
F&O PRODUCTS
Futures & Options Explained.
Learn the basic structure of the two major
derivative instruments.
FUTURES
Futures Contracts
A futures contract represents an agreement to
buy or sell an underlying asset at a predetermined
price on a specified future date, subject to the
contract specifications and exchange rules.
OPTIONS
Options Contracts
Options give the buyer a right, but not an
obligation, to buy or sell an underlying asset
at a specified strike price, subject to the
terms of the contract.
Call or Put?
Understanding the difference between Calls and Puts
is one of the basic building blocks of options trading.
CALL
Call Option (CE)
A call option gives the buyer the right, but not
the obligation, to buy the underlying asset at
the specified strike price, subject to the
contract terms.
PUT
Put Option (PE)
A put option gives the buyer the right, but not
the obligation, to sell the underlying asset at
the specified strike price, subject to the
contract terms.
F&O STRATEGIES
Strategy Should Start With Risk.
Different derivative strategies have different
risk profiles. Understand the structure before
considering any strategy.
STRATEGY 01
Hedging
Derivatives can be used as part of a strategy
designed to reduce or manage exposure to
adverse market movements.
STRATEGY 02
Directional Trading
Traders may take derivative positions based on
their expectation of a particular market direction.
STRATEGY 03
Spread Strategies
A spread can involve multiple derivative positions
designed around a specific market view and risk
structure.
STRATEGY 04
Option Combinations
Multiple option positions can be combined to
create strategies with different payoff structures.
Think Before You Trade.
A disciplined process can help traders understand
the trade structure and associated risks before
entering a position.
01
Analyse
Study the underlying asset, market conditions
and relevant information.
02
Choose
Understand whether the selected derivative
instrument fits your intended strategy.
03
Calculate
Consider premium, margin, contract size,
potential profit and potential loss.
04
Execute
Place the appropriate order based on your
trading plan and prevailing conditions.
05
Monitor
Monitor the position, market movement and
risk throughout the trade.
RISK MANAGEMENT
F&O Is Not Just About Opportunity.
Derivatives can involve high levels of risk. Understanding
the downside is as important as understanding the potential
opportunity.
Leverage Risk
Derivatives may provide exposure to a larger
underlying position relative to the capital
committed, which can magnify losses.
Volatility
Option premiums and derivative prices can change
rapidly as market volatility changes.
Expiry Risk
Derivative contracts have defined expiry and
settlement conditions that traders must understand.
Loss Potential
Certain derivative strategies can involve
substantial or potentially significant losses.
Understand the payoff structure before trading.
Explore Futures & Options.
Understand the instruments, analyse the market, evaluate
the risks and build a strategy before entering a derivative
position.
Disclaimer:
Futures and Options trading involves substantial risk and is
not suitable for every investor. Derivative prices can be
highly volatile and losses may be significant. Leverage and
margin can magnify both gains and losses. Options strategies
may involve complex risk profiles, and certain option-selling
strategies can expose traders to substantial losses. Past
performance is not indicative of future results. The content
on this page is provided for general educational purposes only
and should not be considered investment advice, a recommendation
or a guarantee of returns. Investors should carefully evaluate
their financial objectives, experience and risk tolerance and
understand applicable exchange, regulatory and contract
specifications before trading.