Futures allow hedging against future market volatility by locking the price in an obligatory contract.
Because they derive their values from the underlying asset - the contract's value fluctuates along with the underlier's price movement.
There are two types - put and call. Call options give buyers the right to buy. And put options give you the authority to sell.
Premium is the amount you pay upfront as a buyer of the contract to the 'writer'. If the buyer exit the agreement, the writer gets to keep the premium paid.
It's a zero-sum game. Each party gets squared off at the end of the day based on the day's asset price movement.
It refers to the market where traders trade in F&O. It is different from the cash market where stocks trading happens.
Wealthy investors, asset management companies, banks are some everyday players, along with retail investors.
F&O allows investors to diversify and expand their investment capacity with margin benefits