Investment
Futures and Options
Also known as: F&O, Derivatives Trading
Financial derivatives that allow trading based on future price movements of underlying assets.
Detailed Explanation
Futures and Options (F&O) are derivative instruments that derive their value from underlying assets like stocks, indices, or commodities. Futures are contracts to buy/sell at a predetermined price on a future date, while options give the right (not obligation) to buy/sell. In India, F&O profits are treated as business income for tax purposes.