What are the types of derivative contracts traded in NSE derivative segment?
Futures and Options are the two types of derivative contracts being traded in NSE F&O segment. Future is a financial contract to buy or sell the underlying asset at a specified price at a pre-determined future date. Options contracts are financial instruments that give the holder of the instrument the right but no obligation to buy or sell the underlying asset at a predetermined price on future date. An option can be a ‘call’ option or a ‘put’ option.