A future is an obligation to buy or sell at a set price on a future date. An option gives the right, but not the obligation, to do so. Both use leverage, so losses can be large and fast. SEBI studies have found that about nine out of ten individual F&O traders lose money.
Finance glossary
What is Futures and options (F&O)?
Derivative contracts whose value depends on an underlying share or index, used to hedge or to speculate.
