Futures & Options

Trading is a full-time job, unlike investing. It offers opportunities in a variety of assets. You can trade almost anything in the open market, from equities to commodities and forex, via derivatives trading or directly. Derivatives are short-term financial contracts that derive value from an underlying asset and include an expiry date. These underlying assets can be stocks, commodities, interest rates, or forex. Futures and Options are the two most common types of exchange-traded derivatives. Here’s everything you need to know about futures and options trading.

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Index Futures NIFTY

₹22190.00
-108.25 (-0.49%)
As on 19 March, 2024 | 09:36

Day Range

  • Low 22169
  • High 22260
22190.00
  • Prev. Close 22298.25
  • Open 22260
  • Avg Price 22196.42
  • Open Interest 0.26 Cr Cr
  • Chg in OI% 0.3
  • Market Lot 50 Shares

Option Chain NIFTY

CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
8122.65 850 321050 14000 172650 350 0.85
7092 2450 24950 15000 10900 2950 1.05
6170 50 24450 16000 115600 100 1.05
5115.85 5000 79200 17000 238000 250 1.5
4012 1350 445350 18000 709850 5550 1.7
3020 2300 545550 19000 1137300 6450 1.8
2505 350 106050 19500 290400 8350 1.8
2933 0 3750 19550 1750 3100 2.6
2480.05 250 5650 19600 36650 8100 1.9
2820 0 800 19650 2900 150 2.05
2355 100 10250 19700 33600 750 1.95
2251.5 50 200 19750 3300 3800 2.25
2333 0 9850 19800 79350 100 2.15
2204.45 200 150 19850 2800 200 2.3
2144.4 50 6650 19900 45300 1700 2.45
2183.9 200 150 19950 1150 650 1.75
2016.7 5050 787700 20000 3953450 316200 2.75
2110 450 1600 20050 10400 800 2.75
1940.9 100 3550 20100 123900 12100 2.7
1875.55 0 550 20150 3500 4450 2.85
1990 150 17150 20200 165900 73950 3
1928.45 200 150 20250 8750 8750 3
1776 50 8200 20300 183400 21850 3.15
1728.95 350 650 20350 62650 5650 3.35
1665.65 100 8450 20400 333000 55000 3.25
1647.2 0 600 20450 12650 6900 3.7
1520.75 3850 177100 20500 1255800 146400 3.85
1470.2 0 1150 20550 21900 7300 4.4
1517.55 400 46700 20600 143700 62050 4.6
1491.25 100 1400 20650 61750 27000 5.2
1330 50 20300 20700 337600 114650 5.35
1380 1850 2500 20750 48900 32100 6.25
1214.3 150 32950 20800 415900 86800 6.85
1335 0 1550 20850 46550 12650 7.95
1135 100 11850 20900 407050 163800 8.7
1221.8 0 700 20950 105550 44750 10.1
1035.1 43050 1125650 21000 4532200 762700 11.45
1084.4 700 1900 21050 127250 99700 12.7
934.1 400 19200 21100 438100 159250 14.1
924.6 550 1550 21150 102200 63200 16.45
831 300 96550 21200 1006250 390100 18.8
791 50 6500 21250 150050 78650 22.1
750 850 29350 21300 1057200 432750 25.45
720 50 4700 21350 130150 123500 29.7
657.25 2550 54350 21400 820750 457500 34.9
612 350 4950 21450 158500 99100 40.8
573.35 38100 468650 21500 2893750 962800 47.2
529.25 7650 9350 21550 133350 148400 54.6
484 12500 103550 21600 973550 416400 63.5
452.5 250 24900 21650 240850 231100 73.3
409.05 44400 130600 21700 1601950 814150 84.05
371.35 3350 21800 21750 182250 133650 97.2
336.75 124450 243200 21800 1580450 909400 111.95
303 49250 42000 21850 195650 228650 127.95
270.55 537350 416100 21900 1180950 897800 146.15
242 228500 177450 21950 267900 286350 165.95
212.1 1828600 2486300 22000 3671550 2107150 187.7
185.95 400650 207350 22050 238000 386050 212
162.5 944500 1019750 22100 1163700 720550 237.4
140.75 472350 274350 22150 250000 249950 266.6
121.45 1756850 2470200 22200 1944150 1240250 297.9
103 154050 198250 22250 95950 26700 329.45
87 1018800 1486300 22300 991800 221900 362.7
72.75 210450 271950 22350 89200 36900 398.85
60.75 1017050 1559900 22400 701450 147600 436.4
50.25 270050 216100 22450 53600 14600 472
41.15 916250 2454050 22500 1335700 134000 514.75
33.2 257900 319250 22550 46300 1050 553.65
27 730400 1365100 22600 156850 5000 597.85
21.85 153850 243650 22650 16450 8050 548.2
17.4 803250 1482650 22700 94400 2650 685.95
14.25 195200 357850 22750 32950 3450 736.35
11.2 1031000 1636100 22800 64000 4400 783.3
9.3 77350 270300 22850 18750 1050 831.45
7.85 674450 1119450 22900 25500 8400 882
6.9 100800 166450 22950 19550 0 702.5
6.1 779750 3549900 23000 959750 14850 980
5.1 53250 154250 23050 11200 0 916.1
4.25 150300 668150 23100 25650 500 965.5
3.95 21200 102700 23150 6400 0 899.65
3.5 279750 1224950 23200 114900 550 1039.4
3.4 9400 70750 23250 9650 0 998.85
3.05 58500 315300 23300 3650 100 1259.85
2.95 12250 82100 23350 800 0 1098.55
2.7 29000 258600 23400 2650 200 1223.1
2.65 50100 108200 23450 850 0 1200
2.55 123200 1254150 23500 258000 2550 1476.7
2.3 2400 30050 23550 800 0 969.45
2.35 2400 124200 23600 250 250 1553.25
2.15 6200 169650 23700 850 200 1614.9
2.05 2300 17000 23750 100 0 1149.65
2.05 8600 124550 23800 1100 200 1706.45
2 2850 33050 23850 50 0 1717.1
2.1 16850 66000 23900 500 200 1814.9
1.9 2700 25100 23950 100 0 1376.7
2.05 181050 2326650 24000 517350 3100 1979.65
1.95 750 9950 24050 50 0 1472.85
1.75 1600 42400 24100 1050 0 1995
2.35 1250 15450 24150 50 0 1570.35
1.75 50 34450 24200 150 200 2004.1
2.1 174500 758300 25000 380800 6450 2865.4
1.4 15200 196050 26000 48450 100 3970
1.25 2750 206900 27000 11600 100 4976.35
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
2653 50 700 19600 113800 10050 11.95
2460.1 0 1000 19700 650 0 10.45
2206.75 3650 576300 20000 700800 43950 18.75
2080 100 850 20100 1900 1000 17.45
2200 0 250 20150 100 0 17.05
1983 50 450 20200 86850 6200 22.1
1908.2 0 700 20400 6400 350 26.55
1884.45 200 100 20450 2350 250 30.45
1723.9 750 116300 20500 722550 62950 31.95
1630 0 800 20600 153550 5900 35.75
1780 0 200 20650 5450 650 32.8
1540.9 0 650 20700 283900 12050 41.1
1670 0 250 20750 7450 550 45.1
1410.4 50 50 20900 269950 44850 56.4
1255 7750 270200 21000 1421550 144700 68.45
1329.5 650 550 21050 5800 400 70.25
1251.05 1950 1250 21100 216750 24550 78.45
1160 450 400 21150 3750 450 72
1071 100 4000 21200 287900 27400 91.75
1142.75 1550 1200 21250 9550 850 99.1
1054.55 1600 4450 21300 257650 29900 107.55
1001.35 400 500 21350 17300 300 120
925 50 7950 21400 240100 43950 125.8
915.5 350 650 21450 10950 1150 138.75
838.95 47700 180450 21500 861750 123100 150
920 600 450 21550 55500 450 162.85
763.9 3050 5400 21600 124700 12550 175
831.35 250 150 21650 7100 1400 185.35
695 750 10400 21700 179700 26600 202.5
656 800 850 21750 14850 4500 216.75
627.3 6450 38650 21800 232900 42150 232.6
584 200 3250 21850 9700 1350 245.05
559.5 19550 26950 21900 117550 53850 264.1
532.85 3650 11700 21950 10250 8150 285.15
498.65 161950 818950 22000 1259650 226800 304.05
470.5 1800 12800 22050 21750 7200 328.8
442.5 39950 189400 22100 223000 32400 343.6
409 1800 11700 22150 6900 5850 366.5
386 37750 384400 22200 444450 47300 390
363.2 5900 12450 22250 10600 2700 422
336 27500 182850 22300 177250 15650 440
311.5 3200 12900 22350 10000 1450 473.35
289 21050 265150 22400 144650 14000 494
270 5150 16300 22450 35000 750 517.05
250.05 149550 1190950 22500 831000 47700 552.1
230 1100 16800 22550 8350 5300 515.25
212.5 27450 146350 22600 53450 2850 614
195 250 8500 22650 8750 750 654.9
178 22100 180700 22700 23450 3300 676.05
163.25 3350 19300 22750 11550 450 680.95
148.65 38650 137500 22800 11950 2850 750.3
131.65 2250 10000 22850 11000 150 753.45
122.55 32050 95650 22900 9100 2050 712.85
111.45 2600 13550 22950 3350 150 829.6
101.05 275750 984450 23000 221450 17500 896.25
91.6 2150 10900 23050 3100 150 905.45
82 27800 102500 23100 9900 100 945.45
73.4 2150 8600 23150 6500 150 987
65.65 24600 142000 23200 14050 50 1048
59.75 4250 6650 23250 100 0 985.45
53.1 22900 173100 23300 13300 350 1045.1
47.95 6250 12850 23350 550 0 1008.9
43.35 15000 116650 23400 4500 0 1179.45
39.9 1200 7100 23450 15300 300 1226.7
37.05 108850 594150 23500 152850 2750 1339.3
30.55 12600 126250 23600 1850 0 996.35
28 400 7250 23650 650 0 1377.15
26.1 12250 110350 23700 11550 6750 1425
26.4 3700 8450 23750 600 0 1160.8
22 33250 182950 23800 1450 400 1508.25
22.75 2150 10050 23850 450 0 1288.55
19.15 8500 187200 23900 900 0 1551.75
21.35 9900 8150 23950 750 0 1290
16.75 64500 618500 24000 629500 3350 1815
13.35 13100 112600 24200 1900 200 1890.25
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
1480 150 19550 21000 351700 20500 144.6
1370 0 50 21200 86300 1750 176.45
1083.35 100 14550 21500 203300 7000 242
1080 50 50 21600 12100 250 275
1170 0 50 21650 100 150 271.3
1015.75 200 150 21700 4700 50 287
866.05 200 5150 21800 29450 100 328
791.2 50 550 21900 1050 200 366
735.3 9350 128600 22000 160300 15450 400.45
680 600 4350 22100 9350 600 445.1
611.45 3700 9000 22200 9750 550 499
576 650 5550 22300 7350 1800 467.5
536.9 350 9950 22400 9150 50 575
523.8 100 750 22450 350 0 666
469.7 9950 147250 22500 111100 2650 618.95
440 100 2300 22600 2600 300 610
380 450 5000 22700 5350 4200 660
345 4200 8800 22800 900 0 814.8
344.5 1250 450 22900 1100 0 827.05
371.45 0 50 22950 950 0 851
273.1 21700 184350 23000 31300 1500 899.2
555.15 0 900 23050 50 0 1000.95
145.95 19600 132000 23500 4750 300 1185
121 100 2250 23750 100 0 1250
71.5 20750 161600 24000 500 200 1585.4
23.08

Futures Contracts vs Options Contracts

5paisa Derivative product offering

What are Futures and Options Trading?

Derivatives trading is a big thing in the stock market today. Future and options are also derivatives of stock trading using a contract and at a later date. Trade futures contracts deal in stock through a contract executed between two parties wherein the stock's price is predetermined. Similarly, options trading is also a method of making a contractual deal on selling stock later at a fixed price. However, there is one fundamental difference between futures and options trading. While a trade futures contract must necessarily be executed at the stipulated date (meaning that the sale must happen towards the purchaser), in options trading, the buyer has the right but is not obligated to buy the agreed trade derivative. It would appear that options trading is a tad safer than futures trading, with the buyer retaining the right to reject the trade if stock prices are not favourable on the date of the contract. Futures and Options trading is, more often than not, utilized as an effective method of hedging by market professionals. Deciding the derivative price beforehand and executing a contract helps them seal the sale price if the stock price does not seem to be rising. With that said, this mode of trading comes with its risks. When a futures and options trader assumes a position on a stock and deals a contract on that value, the price is sealed – if the stock sways opposite, the traders stand to shoulder massive losses.

Who Should Invest in Futures and Options ?

Futures and options trading isn't for everyone since it requires deep knowledge of the stock market dynamics and an intuitive idea of where a stock price would go in the next few months or days. There are three kinds of professionals who typically participate in f&o trading. Let us see who they are.

  • Hedgers: Hedging is a trading strategy that aims at reducing the underlying risk in the financial derivatives being traded. By limiting the volatility in stock prices by trading f&o, hedgers can make profits when the conditions of their stock are not favourable. However, when the price of the concerned stock increases during the contract period, hedgers who deal in futures are likely to incur heavy losses. Here, those who trade in options may save their investment by not going through with the purchase.
  • Speculators: These professionals buy and sell their futures options based on a forecasted stock price pattern. Speculators keenly observe stock behaviour on the market and predict a rise or fall. If a stock is predicted to rise, speculators purchase it at a lower price to sell it later when the value is higher, and vice versa.
  • Arbitrageurs: These professionals work on the big picture of future option trading. By dealing in high volumes, arbitrageurs attempt to offset the profits and losses in f&o trading to a positive difference and consequently cash in on risk-free profits. These professionals have a keen eye for trading and benefit from the market's inefficiencies.


Advantages of Futures and Options Trading

Trading in futures and options exposes investors to highly lucrative market environments that work in multiplied profits based on the decided margin. Professionals who wish to reduce the risks associated with market volatility are the ones who engage in futures and options trading; however, someone wishing to gain more exposure in this market can also plunge in at his own risk. Futures and options do present a very chance of high returns. However, for the unversed, the losses are high too.

Advantages of Futures Trading

  • Based on the stock price moving in the predicted direction, a futures contract holder can profit in direct multiples of the decided margin with the futures broker depending on future and options in share market.
  • Price fluctuation is not very drastic, owing to the high volume of futures floating in the market, making these investments very liquid.
  • With futures trading, brokers charge very low commissions and brokerage.


  • Advantages of Options Trading

    • Options trading is cost-efficient. Compared to buying stock directly, the investor can get more leverage and higher volume when trading in the same stock options if he selects the right call.
    • Options have lesser risk than futures, given that it is not compulsory to go through with the purchase in case prices are not favourable.
    • Options have a higher percentage return on investment than trading stock directly, which appeals to many seasoned investors.
    • Options provide investors with alternatives to achieve investment goals by ways other than direct trading, which accelerates profits.


    • Types of Futures and Options

      • Stock Futures: Derivative contracts from underlying stock are called stock futures.
      • Index Futures: Futures contracts trading on an entire market index are index futures.
      • Currency Futures: Futures contracts that trade currencies against each other are currency futures.
      • Commodity Futures: Trades in future options based on agricultural, metals, and others are commodity futures.
      • Interest Rate Futures: Futures trading on debt instruments are called commodity futures.


      Types of Options

      Options are basically of two types: Call and Put. Let's understand them in detail.

      • Call Option: An options contract has a strike price that must be traded when the stipulated date arrives. A call option gives the buyer the right to buy the underlying asset at the terms of the contract signed. However, the buyer is not obligated to go through with the purchase.
      • Put Option: Put options are in stark contrast to call options. These options give the seller the right but not the obligation to sell the option at the strike price in the contract.

Frequently Asked Questions

Example of Futures and Options trading? 

An example of a futures trade can be purchasing a futures contract to acquire 100 shares of Company ABC at Rs 50 each on a specific date. At the expiry of the contract, you will get those shares at Rs 50, irrespective of the prevailing price. 

An example of a call option could be buying a call option at a premium of, say, Rs. 10 to buy the shares at Rs. 50. If the price goes above Rs. 60, the option buyer makes a profit.
 

Is F&O trading profitable? 

F&O trading is a little more tricky than regular stock trading. The profitability of this trading depends on your strategy. 

Which are safer futures or options? 

For individual investors, options may be risky, but futures may be riskier as they imply an obligation, and options mainly offer a right.

How do you profit from futures and options? 

You earn a profit on futures when the underlying price goes above the pre-determined price. In options trading, the call contract buyer earns a profit when the underlying price goes above the exercise price in addition to the premium. Contrary, the put contract buyer makes a profit when the underlying asset price goes below the exercise price and the premium.

How much can you earn from FnO? 

There is no cap to earning from FnO.

How do I start trading in FnO? 

You need a derivatives trading account and can begin F&O trading from there.