How is F&O trading defined in the share market?
F&O refers to Futures and Options—exchange-traded derivatives based on stocks or indices. Futures are binding contracts to buy/sell at a preset price on a future date; Options give the right, not the obligation, to buy (call) or sell (put) by paying a premium. They’re used for hedging, speculation, and arbitrage, trade in standardized lots with fixed expiries, and involve leverage that can amplify gains and losses.