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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F&O Market Snapshot

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All Cash Future Option Currency Commodity
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All Cash Future Option Currency Commodity

Index Futures NIFTY

₹21090.2
59.4 (0.28%)
As on 08 December, 2023 | 16:50

Day Range

  • Low 20949
  • High 21107.45
21090.2
  • Prev. Close 21030.8
  • Open 21085
  • Avg Price 21039.21
  • Open Interest 1.2 Cr Cr
  • Chg in OI% 0
  • Market Lot 50 Shares

Option Chain NIFTY

CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
9992.95 0 7000 11000 43100 14150 2.05
8025 5500 486400 13000 195400 20650 1.9
6750 0 7450 14000 86650 9450 2
5793.55 0 1025 14500 58250 1600 2.1
6018 3050 60250 15000 235875 20550 2.15
5071.6 2600 261900 16000 704600 28200 2.4
4081.3 22850 413700 17000 1015700 69100 2.9
2097.05 0 150 17350 4050 1050 3
2466.55 0 100 17450 1800 250 3
3583.05 10550 179100 17500 815950 160250 4.25
2355.7 0 50 17550 3900 100 3.05
2614 0 350 17600 52650 450 3.05
2515 0 8000 17750 3100 400 3.05
3237.55 250 57200 17800 29300 6200 4.25
3160 100 350 17850 5550 150 3.05
3114.9 50 10100 17900 22450 6300 4
3081.6 23250 2143875 18000 4169000 478250 3.45
3118.9 450 20150 18100 165900 66800 4.7
1040.1 0 50 18150 5200 3250 4.45
2784.45 250 15650 18200 171850 88400 5
1075.55 0 350 18250 173250 32000 4.35
2795.1 750 17500 18300 85400 11750 5.45
1805.8 0 450 18350 32400 8800 4.8
2630 450 12800 18400 231550 74050 5.4
1400 0 800 18450 5700 6700 5.3
2586.05 7500 377900 18500 1690150 243650 6.05
1490.5 0 1450 18550 32550 4050 6.1
2378.45 650 33850 18600 265550 50300 5.9
1620 0 3850 18650 71900 12950 6.35
2363.7 300 45750 18700 261950 57650 5.85
1672.5 0 4400 18750 130150 37450 6.9
2281.65 10450 41650 18800 734350 114500 6
2080 0 8500 18850 70200 21800 6.45
2168.65 850 39200 18900 295300 77800 6.45
2000 50 2400 18950 30500 53700 6.55
2090 44700 928500 19000 5011650 1345600 7.7
1959.9 100 3200 19050 33350 3900 3.1
1953.3 1000 69450 19100 243450 72900 7.65
1816.5 100 12100 19150 30050 48750 7.6
1891.5 3050 71050 19200 456050 156950 7.6
1777.1 850 12500 19250 80900 50850 8.25
1795 7800 90300 19300 618800 297050 8.85
1747.2 2350 8450 19350 165500 48550 8.4
1701.25 2750 92550 19400 396500 219550 9.5
1635 700 22250 19450 30550 43650 9.4
1592.2 44700 692450 19500 1883300 1167450 9.9
1549.6 38550 67000 19550 65600 109950 9.9
1496.95 60750 341750 19600 429300 681300 10.95
1385 550 30600 19650 115200 119500 11.25
1392.55 15400 302650 19700 755650 549300 11.2
1353.7 5750 76950 19750 106750 196250 12
1300.3 45600 615750 19800 1101950 870350 12.7
1242.85 2150 51450 19850 127100 195050 12.9
1206.65 17800 438150 19900 927550 737650 13.6
1135 1850 94550 19950 153700 266150 14.7
1104.1 380400 1674500 20000 4048250 3616550 16.25
1063.2 53850 70400 20050 108750 185850 17.45
1011.7 67100 485600 20100 906950 1328300 18.95
944 5800 95250 20150 136250 231300 19.3
912 162150 1126200 20200 1912200 2040050 20.5
862.7 10150 105550 20250 440700 596300 24.2
813.95 66700 466550 20300 1618700 2405600 26.3
765 8350 52300 20350 159950 359900 28.25
723.95 101200 571700 20400 1436550 2476200 31.05
672.5 15200 133650 20450 261400 513300 35.5
631 595300 1437350 20500 3518050 4645750 39
585.65 141500 68000 20550 254700 530550 45.4
541 342500 775450 20600 1573550 3581550 51.3
502 64850 85000 20650 136350 834300 59
462.95 580750 690800 20700 1103600 2598500 67.65
421 83700 95400 20750 192300 498750 77.7
382 1384400 1260950 20800 1888950 4388400 89.9
348 431750 169550 20850 233400 765100 104.7
314.95 3370700 1190450 20900 1458250 4959200 120
279.75 707250 159300 20950 123150 699700 136.6
252 8211050 3616250 21000 3042800 10016150 156.1
222 618900 172700 21050 91900 425650 180
196 2228750 725700 21100 259000 1137700 201
174.2 346150 190950 21150 55200 87250 229.15
151.5 2668750 1110650 21200 283750 1150800 256
134.15 560850 368050 21250 65500 222950 286.05
115 2564500 683950 21300 81100 297500 321.6
97.6 416200 103800 21350 20500 25350 351.1
85 1977450 601400 21400 21650 66500 387.8
71.7 341350 118750 21450 15000 9350 423.45
59.75 4003050 1875350 21500 251800 322250 461
50.4 303650 80250 21550 4050 8400 504.3
42.8 1291800 506150 21600 5950 46700 538.45
29 1320650 489500 21700 4250 1800 633.95
25.8 250250 78400 21750 50 0 909.55
22.15 1121750 459600 21800 1500 2150 720.4
16.6 504350 240500 21900 650 400 825
14.05 2485300 2189850 22000 709050 136800 908.15
11.2 325200 62400 22100 100 200 1031.7
9.4 397600 101650 22200 2950 4400 1151.2
4.45 258700 828200 23000 579350 20150 1892.2
3.65 148800 250600 24000 53350 1550 2885
3 226550 859200 25000 650 200 3990
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
2552.55 0 100 17500 249650 43950 12.15
3187.5 7450 11050 18000 190950 12650 12.85
1957.8 0 50 18050 3900 0 20
2900 0 50 18100 17750 0 16.15
2000 0 200 18300 76250 0 15.15
2606.15 800 14450 18500 314800 36750 14.4
2445.3 50 250 18700 135300 850 15.45
2260 0 200 18800 173800 9250 16.05
2183 0 1450 18900 141500 6900 17.9
2200 15750 73500 19000 836050 184400 22
710.75 0 50 19050 9800 300 22.5
1997.65 200 1850 19100 103150 9850 21.4
615.45 0 150 19150 2750 50 25
1934.25 550 5700 19200 121600 32100 22.1
966 0 450 19250 7350 4250 24.8
1922.7 1100 10750 19300 85650 38800 24.2
530.15 0 50 19350 7700 3650 26.25
1824.6 10200 7000 19400 94200 27800 28.6
1085.1 0 300 19450 4500 5450 30.55
1726.65 5550 128950 19500 580450 268000 32.05
1294.5 0 150 19550 4600 1450 33.65
1618.25 850 11950 19600 78300 61000 33.95
1480 1850 42850 19700 112500 81900 40
1325 0 850 19750 17650 5350 44.15
1433.1 4550 65350 19800 153150 130200 44.5
1170 0 1600 19850 8150 3300 49.75
1335.45 1350 26250 19900 97150 114900 50.8
1220.85 0 2550 19950 10850 7300 54.3
1255.45 21950 268200 20000 853450 559700 58.75
1161.6 0 1150 20050 6800 4000 63.95
1154.2 2800 30800 20100 56200 53900 67.5
1075 100 700 20150 8450 7450 72.75
1081 9250 39000 20200 359050 269050 78
919.45 250 4050 20250 10000 10800 83.6
995.15 8000 30450 20300 72850 105050 89.3
935 950 10000 20350 5750 5600 98.05
890 7650 20650 20400 99200 238450 105.05
861.9 300 3150 20450 2950 8650 112.75
823.3 86500 289500 20500 660850 544450 122.65
710.55 300 3650 20550 7100 7050 132.2
742.65 18200 92650 20600 120150 91750 140.05
660 100 14550 20650 6150 3900 151.6
667.6 16600 75200 20700 120100 136350 162.2
600.45 950 6300 20750 7700 4200 176.3
595.8 51300 79750 20800 156400 142550 190.6
560 2400 7200 20850 9350 3950 204
528 80900 82250 20900 92300 107150 223.2
495.7 4000 4650 20950 14700 18500 234.1
460.1 385600 477400 21000 433500 617400 250.05
433.75 2850 3400 21050 7100 3050 270
406 56900 72950 21100 43050 37650 292
375 8850 10400 21150 11750 4950 332.55
350.3 99300 420550 21200 30850 48550 335.95
322.5 4650 13150 21250 4400 1700 373.55
298 72350 90350 21300 10250 24950 381.65
275.8 6550 7550 21350 7900 34950 409.05
251.1 62800 55450 21400 7100 12300 436.9
213 461000 451200 21500 85200 181400 494.35
180 69600 67200 21600 5700 1800 561.1
122.1 74550 51050 21800 700 2300 740.95
83.7 903800 367050 22000 42850 34250 850.65
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
2260.1 2300 2200 19000 113550 73900 43.65
1730 50 1250 19500 89700 57450 65.9
1420.5 150 250 19900 6150 11500 98
1395 6900 13800 20000 211150 117700 118.65
1170.6 850 1550 20200 27700 32950 138.7
1073.3 250 1100 20300 7650 6900 154.7
1015.1 100 1650 20400 8000 3000 174
992 10650 41800 20500 109700 84800 197.2
875 50 0 20550 100 0 243.2
893.55 3200 5700 20600 7000 7700 211.05
860 1150 3450 20700 15700 14700 237.2
747 50 350 20750 500 600 249
768.5 2550 6350 20800 22050 14600 262.05
670.9 1100 2350 20900 6750 7950 287.75
663.5 200 250 20950 100 2500 305
634.55 50100 64000 21000 186950 113250 318
566.45 400 2500 21100 1400 900 405.15
511.35 4200 3250 21200 9200 5650 393.25
456.3 3350 3250 21300 3200 600 442.25
403.35 1500 1900 21400 3500 3450 495
362.6 100950 103650 21500 45200 46850 531.45
311 1400 5500 21600 1300 350 666
299.55 250 2100 21650 150 0 876
260 5850 5400 21700 850 350 674.05
242.3 3850 1150 21800 1150 200 753
213.55 2650 4400 21900 1050 350 801
186.5 90650 57800 22000 3450 8350 850
138 7750 5600 22200 50 50 1150.2
89.12

Futures Contracts vs Options Contracts

5paisa Derivative product offering

Margin plus - Click for Details

  • Zero cash margin requirement for Intraday trades across all segments, no interest charged.
  • No need to maintain 50% cash margin in F&O (Lowest in the industry starting @10.95% p.a.).
  • Avail upto 100% cash margin funding for cash delivery orders @ 0.06% per day.
  • Real time activation of MarginPlus while placing orders across segments.
  • Increase your ROI on short term trades with the help of funding.

Option Chain with Greeks

  • Get real-time options data to view all options contracts for determining where the action is building up.
  • Analyze and identify the strikes at which high or low liquidity appears
  • Measure an option's sensitivity to the changes in the price of underlying,market volatility and time to expiration

Developer APIs

Developer APIs are a set of REST APIs which gives you open access to get live market prices, execute orders in real time and manage your orders, positions and many more additional tools to ease your trading journey.

Advance Charting

  • Highly interactive charts with trade from charts feature to enhance your trading experience.
  • Get access to multiple tools and indicators with real-time and optimized charting.

Quick Options

  • Easy to execute index options trades with a swipe (Bullish/Bearish)
  • Limit your risk and identify correct strikes for your options trading journey

Real time Trading Ideas

Get premium derivative trading calls exclusively for trading into derivatives by our research team.

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.

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