Quick Answer Futures and Options (F&O) trading involves derivative contracts that allow investors to speculate on or…
Futures trading
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Futures trading involves buying and selling standardized contracts to buy or sell a specific asset at a predetermined price on a future date. This form of trading is commonly used for commodities, currencies, stock indexes, and interest rates. It allows traders and investors to hedge risks, speculate on price movements, and gain exposure to various markets. Futures trading is known for its leverage, liquidity, and the ability to profit in both rising and falling markets.