How F&O Trading Works and Why Traders Use It
F&O, or Futures and Options, is a segment of the stock market that deals with derivative instruments whose value is derived from an underlying asset such as stocks, indices, commodities, or currencies. Futures are contracts to buy or sell an asset at a predetermined price on a future date, while options give the buyer the right—but not the obligation—to buy or sell the asset. F&O trading is mainly used for hedging risk, speculation, and leveraging market movements, but it involves higher risk and is generally suited for experienced traders.