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Showing posts from June, 2023

All You Need to know about Future and Options (FNO)

What are Future and Options? Futures and options are financial contracts that allow individuals or investors to speculate on the future price movements of various assets, such as stocks, commodities, or currencies. In simple terms, futures contracts are agreements to buy or sell an asset at a predetermined price and date in the future. Options, on the other hand, give the holder the right, but not the obligation, to buy or sell the asset at a specified price within a specific timeframe. Both futures and options provide opportunities for investors to make profits by taking advantage of price fluctuations in the market. For example, if an investor predicts that the price of a certain stock will rise in the future, they can buy a futures contract or an option to potentially profit from that anticipated increase. Futures and options can also be used as risk management tools. They allow businesses or individuals to hedge against potential losses due to adverse price movements. For