Futures and Options (F&O) segment of the market is different from the cash market. Anil Singhvi, Managing Editor, Zee Business, explains the basics of F&O segment and how it is different from the cash market where a person/trader can buy or sell a share at a price at any time. Both segments are available on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). 

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In F&O segment a trader is supposed to buy or sell the underlying asset for a specific price at a pre-determined time. In short, buying a futures contract or options contract means you are making a promise to transfer an asset to the buyer of the future at a specified price at a particular time.  

Through this video, Singhvi explains the meaning of F&O, the meaning of long and short as well as when the segment came into existence. Watch the video to learn the ABCD of the F&O segment below:

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