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

Index Futures NIFTY

₹22060.00
-192.85 (-0.87%)
As on 13 May, 2024 | 10:12

Day Range

  • Low 22030.1
  • High 22242.45
22060.00
  • Prev. Close 22252.85
  • Open 22229
  • Avg Price 22103.47
  • Open Interest 0.29 Cr Cr
  • Chg in OI% 2.11
  • Market Lot 25 Shares

Option Chain NIFTY

CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
1922.6 75 29825 20050 122050 85600 8.75
1841.6 1300 247775 20100 801925 138225 9
2001.55 200 1225 20150 18475 20550 10.65
1740 25 29300 20200 221350 86200 11.55
1823.8 0 1650 20250 38950 7700 11.7
1823.35 3275 7350 20300 218725 40550 13.95
1752 0 875 20350 4125 2375 16.75
1550 25 14625 20400 201425 86250 16.95
1636 0 1300 20450 5725 18300 18.85
1438.35 32500 647825 20500 1547525 530000 20.5
1580 400 1325 20550 23700 8250 22.35
1360 275 7750 20600 267175 115975 25.3
1451.1 0 650 20650 42575 56075 27.45
1363.45 25 5875 20700 268325 237875 30.15
1356.9 0 650 20750 33075 25475 32.15
1305 525 45725 20800 490225 360275 35.2
1263.25 0 800 20850 24600 20725 37.75
1108 150 13975 20900 428650 329275 43.25
1170.35 0 1200 20950 35075 13650 47.25
993.75 43525 518375 21000 3130450 1075800 53.25
1124.95 425 1675 21050 53300 95125 56.3
930 375 11700 21100 371000 260225 63.15
1021.15 400 1500 21150 81600 86150 69.1
826.25 2475 28025 21200 867450 455475 75.15
790 150 1425 21250 116275 37475 83.4
731.95 225 12000 21300 857625 418550 90.35
778.55 300 1375 21350 47625 44200 100
639.6 875 25500 21400 893175 408050 108.1
611.45 475 2175 21450 62825 70075 119.5
572.75 92900 393200 21500 3599175 1122700 130.9
533.55 1625 4100 21550 88300 53350 143.95
501.4 25600 80625 21600 941575 480025 157.4
465 6150 8575 21650 113525 69400 171
432.9 78350 112575 21700 1068925 927900 188.05
396.55 11100 18200 21750 190600 102075 205.1
370.45 268250 403900 21800 1285625 935025 223.6
339.7 39150 25975 21850 78250 126975 243.6
311.6 479475 327700 21900 1183300 927275 265.8
284.45 94725 59525 21950 112275 162450 286.45
258.05 1958400 2121125 22000 3696000 2370775 310.75
233.1 92875 94200 22050 121275 120050 332.65
208.2 729800 718400 22100 968300 580325 363.35
189.4 106100 95075 22150 107750 79575 391.25
169 1055800 1414900 22200 1216750 738800 423.15
150.1 191850 134550 22250 95050 27300 453.9
132.75 926700 1121625 22300 990050 337475 483.5
117.2 154450 158525 22350 99775 10775 522
103.9 800900 1063375 22400 648550 169775 554.7
91.4 158150 111625 22450 69750 20825 590.7
80.85 1982250 2943650 22500 1865000 462100 629.5
70.05 105000 135175 22550 49575 3375 672.8
62.15 889750 1477825 22600 1427700 115825 710
53.25 166875 188925 22650 72350 5150 756.3
47.65 1022700 1346075 22700 1315425 29225 797.95
41 168100 257550 22750 76225 1325 830.8
35.95 1290050 1511400 22800 570925 10500 889
31 170425 149950 22850 21650 1225 917.15
26.9 914175 913425 22900 144875 5050 975
23.35 180825 175725 22950 25050 1125 855
20.95 1647825 3005650 23000 1262550 34125 1072.85
18.55 154975 109000 23050 23250 2300 979.25
16.05 1277650 1176175 23100 36225 3825 1163.85
15.3 118250 79250 23150 18600 200 1054.6
14.15 1407775 1052475 23200 40125 1100 1272
13.6 74775 130400 23250 17450 125 1308.15
12.15 416600 664200 23300 24900 1350 1369.2
11.25 52125 77150 23350 10600 2175 1218.15
10.6 315850 428600 23400 17175 250 1439.75
9.85 59950 44450 23450 8950 150 1345.15
9.55 826350 2289850 23500 404475 16950 1562
8.8 36025 43400 23550 4775 525 1425.55
8.3 323775 351975 23600 8000 25 1665
7.85 14950 41750 23650 1725 0 1574.95
7.15 142650 378850 23700 4725 100 1720
6.75 55000 41500 23750 1000 0 1673.15
6.15 183325 526125 23800 4075 25 1765.1
6.25 4350 11350 23850 1900 0 1771.7
6.2 91300 94350 23900 2275 100 1806.7
6.5 2425 33750 23950 1675 0 1868.8
5.95 361425 2337925 24000 452350 11525 2080.25
5.1 1250 18675 24050 1900 0 1967.5
5.1 46725 102625 24100 1250 300 1933.75
4.85 6300 8000 24150 2550 600 1982.2
4.35 337025 264675 24200 3100 500 2031.5
4.85 45300 90925 24250 3925 550 2089.95
4.3 55875 70175 24300 1700 275 2135.25
4.25 4825 8600 24350 2050 400 2182
3.95 27675 40000 24400 4850 400 2230.35
3.75 3950 7950 24450 2350 450 2280.05
3.9 96275 910475 24500 285975 7375 2566
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
6998 1050 401175 15000 259350 750 6.95
5400 0 20750 17000 250425 28750 13.85
4030 3500 523400 18000 955650 69525 24.65
3083.5 3650 455100 19000 1213700 174450 52
2169.05 3875 572500 20000 2904350 364350 127.65
2000 250 2200 20300 1025 375 119.8
1737.55 1725 15650 20500 767175 115550 195.6
1687.75 50 600 20600 401850 27650 210.6
1705.35 0 525 20650 950 0 82.65
1655.85 0 275 20700 295475 39500 226.45
1621.75 0 375 20750 4175 0 54.85
1621.45 75 700 20800 339000 18000 248
1583.95 150 625 20850 2725 25 88.5
1450 50 850 20900 295925 18800 269
1452.6 25 800 20950 6850 0 189.4
1352 38475 530975 21000 3522275 487650 294.9
1431.75 50 700 21050 3425 0 139.5
1377.35 300 900 21100 205525 23750 316.4
1304.1 0 575 21150 12375 0 120.7
1207.15 500 725 21200 234675 29525 342.4
1230.05 0 475 21250 2000 100 234.1
1129.05 8625 2425 21300 190750 21000 367.55
1217.2 50 750 21350 2900 0 172.2
1065.05 175 1325 21400 157225 18850 400.3
1055.75 50 475 21450 2425 0 229
992.6 16900 94275 21500 1861400 251650 435.6
1043.9 825 1000 21550 9975 450 453.25
932.95 1025 5150 21600 118150 16700 467.75
988.15 125 400 21650 6425 2225 483.55
869 2175 5375 21700 104625 22875 505
944.35 825 975 21750 7075 1150 534.45
808 10875 84150 21800 198800 67375 538.2
774.6 525 1225 21850 4700 5475 558.75
746 14825 17300 21900 89200 36900 580.55
714.7 1200 5325 21950 6850 7275 602.8
693.85 156825 1730625 22000 3564350 459125 625.8
662.65 2000 7100 22050 7025 1950 663.35
635 14300 53550 22100 68350 16650 666.25
608.15 2500 4575 22150 5975 325 696.35
584.75 82675 178725 22200 234425 74750 713
557.8 3100 5500 22250 8575 225 743.85
536.95 19675 95150 22300 132025 12500 761.2
513.15 850 4875 22350 7225 750 757
486.85 22200 110775 22400 110250 18900 819.95
478.1 1625 17950 22450 14300 800 833.25
448.95 197950 1047650 22500 1559800 120200 876.3
442 300 21925 22550 5150 800 880.15
401.5 21050 104050 22600 73475 14325 932.65
380.2 1075 8550 22650 3725 350 807.75
367.15 24875 168400 22700 91225 14800 985.9
349 2450 10700 22750 6750 225 1010.8
329.95 34200 205500 22800 79250 6825 1065.2
314.05 1575 10700 22850 2675 1275 1083.3
298.3 18900 63375 22900 41750 400 1111
284.5 725 5750 22950 300 200 931.35
270.85 307875 2218250 23000 948600 43875 1185.95
257.1 300 6975 23050 4225 25 1125.5
240.7 17850 46225 23100 16000 575 1093.05
227.4 175 1275 23150 225 50 1142.1
215.95 24600 143200 23200 15700 125 1159.55
209.4 250 4650 23250 1375 425 1200.15
192.45 15200 52675 23300 11150 375 1404.15
185 300 6875 23350 600 0 1312.2
172 13875 50500 23400 6450 150 1338.25
161.75 100 11375 23450 1300 25 1364.2
154 183275 751675 23500 105125 9125 1564
144.25 1325 13125 23550 3850 400 1412.9
136 8875 55675 23600 2400 75 1464.65
128.05 3475 12850 23650 1350 0 1550
120.15 14750 81450 23700 2625 100 1560
113.05 1150 6325 23750 900 25 1604
107.1 17200 70125 23800 2575 325 1617.15
182.2 0 2175 23850 650 50 1707.15
95.9 5550 46375 23900 1450 25 1714
94.15 11500 7425 23950 250 0 1814.4
84.5 312150 2244575 24000 540200 4975 1990
79.35 275 17225 24050 750 0 1902.25
73.1 21325 86500 24100 1225 0 1946.05
71.1 625 5200 24150 675 0 1990.85
66.35 6100 196775 24200 1575 50 2060
68.35 5000 41150 24250 800 350 2011.4
58.05 10975 155800 24300 500 50 2100.95
51.9 25 4200 24350 800 400 2103.35
55.25 4150 49825 24400 650 100 2149.6
52.9 1800 11850 24450 900 300 2193.85
49 47200 359800 24500 4500 1275 2285.7
31.05 112925 1558900 25000 582475 600 2918.9
13.05 50275 786500 26000 112450 25 3800
8.85 5950 232375 27000 31400 150 4850
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
1888.2 50 50 20600 100 100 131.95
1839.15 700 625 20700 100 100 151.7
1790.35 250 675 20800 186725 14225 284
1691.3 1075 200 20900 176225 18350 306.55
1490.7 675 9900 21000 360450 31125 337.9
1481.85 0 425 21100 650 0 85.65
1368.65 25 175 21200 250 0 194.45
1299.4 25 200 21300 75 25 270.55
1174.7 875 3275 21500 151650 13350 479.45
1188.7 0 375 21550 1125 1350 418.05
1120 825 450 21700 25 0 200.85
965 650 900 21800 24475 6475 580
970.9 25 150 21850 75 325 497.2
917.55 1700 2500 21900 15200 2950 633
955.15 25 100 21950 600 575 538.9
858.9 9725 39550 22000 279225 35275 665.35
908.9 900 125 22050 200 25 552.3
825.65 1125 3425 22100 5300 4625 706
821.75 0 150 22150 125 250 620.1
765 325 4000 22200 8850 3150 748.05
808.55 300 550 22250 825 825 784.5
709.15 125 5025 22300 11975 875 797.65
724.9 25 500 22350 500 225 711.95
651.75 800 6575 22400 5100 900 800.05
662.45 25 175 22450 400 25 833.55
605 8050 46975 22500 133350 12200 901.75
630 400 550 22550 425 0 679
560.6 350 7500 22600 19400 1575 953.75
569.4 125 775 22650 275 0 714.7
511.6 1425 6875 22700 15650 1350 997.5
491.3 2200 3500 22750 625 25 897.3
468.35 2250 8075 22800 3650 900 1070
492.7 175 500 22850 75 0 813.8
433.85 1800 3750 22900 1600 2600 979.45
412.6 50 500 22950 75 25 989.25
398.15 20225 78050 23000 47525 9825 1176.35
424.15 0 250 23050 75 25 1068
362.05 725 2050 23100 1200 425 1247.95
360 150 225 23150 100 25 1158.95
334.65 100 3025 23200 2625 1275 1152.45
299.75 675 2600 23300 975 100 1224.65
292.5 175 175 23350 50 0 1220.25
272.35 200 2325 23400 1475 75 1270.5
283.75 25 175 23450 125 50 1243.6
246.5 9725 53725 23500 5100 1275 1525.1
254.35 25 1750 23550 100 0 1427.55
222 75 2450 23600 6050 0 1471.3
223.6 1025 975 23650 100 75 1477.6
210 200 1975 23700 50 0 1541.1
191.55 300 300 23750 100 0 1577.5
190 50 3300 23800 250 25 1589.45
169.2 75 3075 23850 200 25 1627.25
169.5 75 4600 23900 1000 250 1681.9
156.95 25 1750 23950 375 50 1865.1
150.15 20400 136100 24000 1375 350 1700.65
140.6 100 1275 24050 1250 275 1769.45
124.05 325 1800 24100 625 125 1981.45
122.55 175 250 24150 700 25 2023.75
113.55 2350 2300 24200 175 25 1857.95
112.45 800 875 24250 750 300 1934
100.8 1100 54300 24300 425 0 1924.4
94 25 2500 24350 575 25 2107.45
85.6 21750 137525 24400 450 0 2089.25
14.09

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.