Pre-cum-Mains GS Foundation Program for UPSC 2026 | Starting from 5th Dec. 2024 Click Here for more information
News: SEBI has announced measures to limit individual trading in F&O segment and help investors to channel savings in productive areas.
1. Futures and Options (F&O): They are two varieties of financial derivatives which were introduced in India by National Stock Exchange (NSE) in June 2000.
2. F&O segment allows traders to speculate on future prices of stocks without owning them, making them susceptible to both gains and losses.
3. A futures contract obligates the buyer to purchase a specific asset and seller to sell that asset at a particular future date.
4. Types of Futures: A) Financial Futures B) Physical Futures
5. Whereas an option gives the buyer the right (but not obligatory) to buy or sell an asset at a specific price at any time during the life of the contract.
6. Types of Options: A) Call Options B) Put Options.
Discover more from Free UPSC IAS Preparation For Aspirants
Subscribe to get the latest posts sent to your email.
