What is the difference between Futures and Options?

What is the difference between Futures and Options?

Futures obligate you to buy or sell an asset at a fixed price on a future date, with unlimited profit and loss potential. Options give you the right — but not the obligation — to buy or sell, with the buyer’s maximum loss limited to the premium paid. F&O Universe focuses on options trading, giving you tools to analyze, strategize, and execute options positions with full visibility of your risk before entering a trade.

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    • How to activate futures and option(FNO) segment ?

      To proceed with the activation, kindly follow the below-mentioned steps: Through ASK IIFL: In Mobile App (Login >> Click on the three lines at the top left corner >> More >> ASK IIFL ) On IIFL Mobile App: 1. Log in to the Mobile app 2. Click on the ...

    • Do Corporate Actions impact Futures & Options (F&O) positions?

      Yes, certain corporate actions impact F&O contracts. However, exchanges like the National Stock Exchange of India and BSE Limited adjust contract specifications to ensure that traders are not unfairly affected.

    • How are Futures contracts adjusted?

      Depending on the corporate action, exchanges may modify: • Futures price • Lot size • Number of contracts These adjustments are made to maintain the overall contract value, ensuring no artificial profit or loss arises.

    • How are Options contracts adjusted?

      For options contracts, exchanges may adjust: • Strike price • Lot size (market lot) • Number of contracts The objective is to preserve the value of the position before and after the corporate action.

    • Do you offer real-time options chain data in InstaOptions?

      Yes, InstaOptions offers real-time options chain data. The real-time options chain data includes the following information: Strike price, LTP, IV, Greeks, OI (Change), and PCR.