Futures and Options (F&O) trading is increasingly carried out through digital platforms, making the choice of a trading app an important part of the process. An F&O trading app may bring order placement, market data, charts, options chains, and position tracking into one interface. However, the features available and the charges applicable may differ across platforms. Traders may therefore compare the tools and account facilities before starting F&O trading. This article explains what F&O trading involves, which features may be relevant in a trading app, and the basic steps involved in getting started.

What Is F&O Trading?

Futures and Options (F&O) are derivative contracts whose value is linked to an underlying asset, such as a stock or market index. A futures contract involves an obligation to buy or sell the underlying at a specified price and date. An options contract provides the buyer with a right, but not an obligation, to buy or sell the underlying at a specified price within the contract terms.