Chetan Dhokiya SEBI Registered Research Analyst and Investment Advisor

Future and Options Tips

Future and Options Tips (F&O Tips)

Get Free F&O Intraday Stock Tips by High accurate Future and Option call Provider Company in India. If you are looking for Free F&O Calls provider for NSE or BSE Stock Market then your search ends here. 1 Day Free trial is also available. Visit Our Free Trial Page for Register our free Intraday Tips services in F&O (Future and Option) segment.


Meaning of Future and Options

F & O are two of Very common form of "Derivatives". Derivatives are financial instruments that derive their value from an 'underlying'. The underlying in NSE or BSE Share market is a Share issued by a company.

There are of two types contracts: one of them is futures contract and second is options contract

Meaning of Futures Contract

Futures Contracts Simply means that you agree to buy or sell the underlying security at a 'future' date. If you buy the contract, Automatically you promise to pay the price at a specified time of Period. If you sell it, you must transfer it to the buyer or Purchaser at a specified price or Cost in the future.

Meaning of Options Contract

Options Contract gives the buyer the right to buy or sell the underlying asset at a predetermined or Prefixed price, within, or at end of a specified Time of period. He/She is, however, not obligated to do so. The seller of an options is obligated to settle it when the buyer or Purchaser exercises his right.

Difference Between Futures Contract and Options Contract

Here are Explanations with Example of How are F&O contracts different from each other?
In futures contracts, the buyer and the seller have an unlimited loss or profit potential. The buyer of an option can make unlimited profit and faces limited downside risk. The seller, on the other hand, can make limited profit but faces unlimited downside

Advantages of Futures and Options Contract

  • Required Less Amount of Investment
  • You can trade with Only Margin Money (5% to 20% of Total Contract Price) (Margin Money Depends Upon Your Broker)
  • Maximum Profit with Minimum Capital Investment
  • Levied Low Brokerage Compare to Equity or Commodity
  • Short Sell Facility Available
  • Register with Us for Best Future and Options Tips in Indian Share Market.