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Advanced English · HinglishFree

F&O Concepts

Futures, calls, puts and the Greeks, explained with payoff charts.

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CALLPUT
6
Lessons
3
Chapters
12
Diagrams
42
Practice questions
2 hr
Time

What you'll be able to do

  • Explain what a futures and an options contract are
  • Draw the payoff of a call and a put
  • Read delta, gamma and theta
  • Plan risk before any derivative trade

Course syllabus

Every lesson has worked examples, diagrams, key terms, common mistakes and a practice check.

  1. 1

    Chapter 1

    The contracts

    • Futures and Options: The Basics 12 min

      A future is an obligation; an option is a right. That one difference shapes every risk you take in F&O.

    • Calls, Puts and Moneyness 12 min

      Learn to read any option quote: strike, premium, intrinsic value and time value.

  2. 2

    Chapter 2

    Evidence and pricing

    • The Evidence: SEBI's F&O Study 10 min

      Before strategy, look at outcomes. SEBI's data shows how individuals actually fare, and why.

    • The Greeks Without the Fear 12 min

      Delta, gamma, theta and vega describe how an option's price reacts to price, time and volatility. Think of them as a dashboard.

  3. 3

    Chapter 3

    Risk and practice

    • F&O Risk Management and Hedging 12 min

      Derivatives were invented to reduce risk. Learn hedges like the protective put, and rules that cap F&O losses.

    • Practise F&O on Paper First 12 min

      A month of rule-based paper trading teaches more than a year of tips. Here's how to set it up properly.

A look inside: “Futures and Options: The Basics”

In this lesson you will

  • Define a futures contract and an option
  • Know expiry, lot size and settlement
  • Compare the payoff of futures and options
A futures position moves rupee for rupee
Straight line payoff through the entry pricegainlossyour entry price

Buy a future and every point the price rises above your entry is a gain; every point it falls is a loss, without limit in either direction until you exit.

Underlying
The asset a derivative is based on.
Futures
A binding contract to buy or sell at a fixed price on a future date.
Option
A right, not obligation, to buy (call) or sell (put) at a strike price.
Physical settlement
Actual delivery of shares at expiry for stock derivatives.