F&O (Futures & Options)

Futures & Options — exchange-traded derivative contracts with a fixed expiry date, distinct from delivery or MTF equity positions.

What It Means

F&O (Futures & Options) refers to exchange-traded derivative contracts whose value is based on an underlying stock or index — a futures contract obligates a trade at a set price on a set date, while an options contract gives the right, but not the obligation, to trade at a set price before it expires. Unlike a delivery trade or MTF position, every F&O contract has a fixed expiry date.