Norms of Trading

sfg-2026
ForumIAS LATEST
  1. 22 May |The Last e-Meet before Prelims 2026 Click Here to register
  2. 17 May | ABC of Indian Sociology Series | 'H' = HAROLD COULD | Sociology Optional Simplified Click Here
  3. 15 May | If You Are Giving Prelims 2026, Watch This Before Entering the Exam Hall Click Here to listen to Ayush Sir's advice →

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.

Print Friendly and PDF
Published
Categorized as Knolls

By prashant shekhar

Helping aspirants connect the dots between current affairs and concepts— so you don’t just read more, you understand better.

Blog
Academy
Community