Learn & Earn: F&O Derivatives Market Basics

Learn & Earn

Currently 147 stock and 3 Index are available for trading in F&O segment.
Scripts may be added and removed from F&O as per decided by Exchanges (NSE / BSE).
Trading in F&O in done in lot size and each stock / index – lot size is defined and lot size may also change as per decided by Exchanges from time to time.
Instrument available from F&O / Derivative segment is 1) Futures and 2) Options and in Options contract there are 2 type of options 1) Call options and 2) Put options
Call Options – Right to Buy
Put Options – Right to sell
From April 2019 – NSE has started physical settlement in stock options contract and from October 2019 all stocks in F&O are eligible for physical settlement.
Ban Period – In case of open interest in stock futures and options contract combine reaches above permissible limit, that particular stock comes under Ban period and new position in Futures and options contract are not allowed till such stock comes out of Ban period.

Currently 147 stock and 3 Index are available for trading in F&O segment.
Scripts may be added and removed from F&O as per decided by Exchanges (NSE / BSE).
Trading in F&O in done in lot size and each stock / index – lot size is defined and lot size may also change as per decided by Exchanges from time to time.
Instrument available from F&O / Derivative segment is 1) Futures and 2) Options and in Options contract there are 2 type of options 1) Call options and 2) Put options
Call Options – Right to Buy
Put Options – Right to sell
From April 2019 – NSE has started physical settlement in stock options contract and from October 2019 all stocks in F&O are eligible for physical settlement.
Ban Period – In case of open interest in stock futures and options contract combine reaches above permissible limit, that particular stock comes under Ban period and new position in Futures and options contract are not allowed till such stock comes out of Ban period.