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Though they are common in many aspects, they also differ in key areas:

Right Vs Obligation - Futures are an agreement to trade that must be fulfilled on the designated day. While with options, the buyer is only given the option to exercise the contract, not the obligation.

Date of Trade - A futures holder is required to exchange the securities at the designated time. While with options, you can exercise various choices at any moment up until the expiration date.

Payments - When you enter into a futures contract, there are no upfront charges. Only when you square off the futures contract on the designated day do you make the payment. On the other side, you will have to pay a premium to purchase an option. The option's seller receives this premium since you will forfeit it if you decide not to exercise the option.

Risk Factor - In event of a price fall, you can opt out of exercising your options. When it comes to futures, you won't have the same freedom, where the trade must occur at the designated date, regardless of the price.

In F&O trading, the fundamentals of futures trading are identical, with the same rules applying to both buyers and sellers. Options are of two types: Call and put options. With a call option, you can purchase the underlying asset at a predetermined price and date. With a put option, you can sell the asset at a predetermined price on a particular day. The trade is always optional in both situations. If the pricing don't work for you, you might decide not to use your call or put option.

By purchasing index futures rather than individual securities, a trader can trade the ""entire stock market"" with the effectiveness of a mutual fund.

Index futures trading has the following benefits:

- Index Futures contracts offer more leverage than other stocks

- They are extremely liquid

- They need little initial capital

- They have lower risk than purchasing and owning stocks

- They are equally simple to trade on the short and long sides

- They only require the study of one index rather than hundreds of equities.

Trading options and futures involves a dedication to market monitoring as well as knowledge of the subtleties of the stock market. There is a significant amount of speculation as well. Therefore, hedgers or speculators tend to employ it most frequently. Traders looking for lowest brokerage charges for F&O can get the lowest brokerage charges in option trading on a zero brokerage F&O trading app.

To trade futures, you must pay the broker a margin. It is fixed at the largest loss you can sustain and represents a percentage of the transactions you are allowed to make. In unstable times, margins will be higher. In options, you provide the option's seller, known as the "writer," a premium.

On the expiry date, futures and options are handled in different ways. Futures are obligated contracts, therefore upon expiration, the parties must settle their differences through the physical delivery of the Underlier or payment in cash. If the asset price exceeds the striking price, you are in the black and lose money if the asset price falls below the contract value. Contrarily, choices don't have to be made. Therefore, the options expire worthless if the parties do not exercise their rights by the expiration date.

Nifty options trading refers to the trading of options contracts based on the Nifty 50 index, which is the benchmark index of the National Stock Exchange (NSE) in India. The Nifty 50 index represents the performance of the 50 largest and most liquid stocks listed on the NSE.