What are Futures & Options Trading
In the world of finance, futures and options are vital tools for investors. Futures are contracts obligating buyers and sellers to trade assets at a set price on a future date, while options offer the choice to buy or sell at a specified price before an expiration date. Future and option trading, known as F&O trading, involves using these instruments to speculate or hedge in markets, including stocks and commodities. They serve diverse purposes, from risk management to profit generation. Understanding these tools is essential for informed investment decisions in dynamic financial landscapes.
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