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Invest in Futures and Options

Option chain

Nifty 50


15,513.90
CMP
15,787.25
15,183.40
CMP
18,604.45

Prev. Close

15,744.35

Open

15,704.00

Spot Price

15,752.05

OI

11,789,250.00

OI Change %

4.43

Rollover %

0.67

Cost of Carry

1.88

Contracts

6,071.80

Market Lot

50.00
Option chain

Nifty 50


15,513.90
CMP
15,787.25
15,183.40
CMP
18,604.45

Prev. Close

15,744.35

Open

15,704.00

Spot Price

15,752.05

OI

4.43

OI Change %

4.43

Rollover %

0.67

Cost of Carry

1.88

Contracts

6,071.80

Market Lot

50.00

Why choose ICICIdirect for F&O Trading?

ICICIdirect provides best in class features and tools for seamless trading in futures & options for all customers. View the reasons to trade with us:

Best in Class Platforms

Our new Markets Mobile App has the next-gen technology and capabilities such as live technical charts, OI graphs on the Option Chain, Biometrics based login and much more. Trade Racer is our proprietary desktop program for integrated trading with multiple watchlists and live prices.

Advanced Analytical Tools

With multiple tools to analyze and plan your trades, you will always be a step ahead of the market. With Payoff Analyzer and i-Track, you can get the estimated payoffs for your positions in a customized manner while Technical Charts and F&O Insights at Fingertips provide rich data points for your trades.

Award winning Research

Our research team provides multiple research calls and results updates regularly to suit all types of market participants. Strategies, weekly and monthly Derivatives view along with OneClick Derivatives help our customers make informed decisions at the click of a button.

Best of Brokerage

Trade at Zero with the Neo Plan with all Future trades at Rs.0/order and Options at Rs.20 per order unlimited. We also do not charge any interest for Shares as Margin trades in F&O for non-Neo customers, so get started today.

Next-Gen Trading API

Breeze API is our powerful and all-new set of trading APIs which helps you trade simpler and faster. Three layers of security, 3 years of Historical Derivatives Data, Streaming OHLC and much more free of cost for our customers. Try Breeze API today

Option Chain

CALL Strike Price PUT
LTP() CNG % Vol (Cr)
LTP()
Vol % OI (Cr)
OI %Chg
OI %Chg LTP() CNG % Vol (Cr)
LTP()
Vol % OI (Cr)
OI %Chg
OI %Chg
1,975.50 1.10 742
1975.50
-98.67 63,150.00
-9.66
-9.66 13,800 15.00 -28.06 10,666
15.0
-96.19 492,100.00
52.09
52.09
1,901.60 -1.08 5
1901.60
-95.00 200.00
33.33
33.33 13,850 12.15 -49.27 239
12.15
-84.07 14,350.00
187.00
187.00
1,756.50 -6.56 25
1756.50
-50.00 1,050.00
425.00
425.00 13,900 18.00 -28.43 2,426
18.0
-98.90 91,550.00
-7.24
-7.24
1,708.05 -6.66 5
1708.05
-90.00 50.00
0.00
0.00 13,950 19.80 -27.34 500
19.80
-56.52 15,700.00
685.00
685.00
1,774.45 0.62 1,043
1774.45
-99.73 608,750.00
0.64
0.64 14,000 21.95 -25.21 29,959
21.95
-97.77 2,281,050.00
23.00
23.00
1,691.80 -3.19 7
1691.80
-86.00 100.00
100.00
100.00 14,050 23.60 -21.33 438
23.60
-58.29 17,600.00
222.94
222.94
1,573.80 -14.21 20
1573.80
-80.00 1,000.00
150.00
150.00 14,100 26.10 -22.67 5,720
26.10
-97.99 143,350.00
-13.41
-13.41
1,562.25 24.17 2
1562.25
-98.00 100.00
0.00
0.00 14,150 28.50 -25.59 352
28.50
-92.43 12,650.00
54.27
54.27
1,515.70 -5.33 17
1515.70
-94.33 1,850.00
54.17
54.17 14,200 31.05 -20.38 7,809
31.05
-97.41 353,200.00
11.09
11.09
1,468.40 -13.39 2
1468.40
-96.00 300.00
0.00
0.00 14,250 33.45 -20.55 661
33.45
-94.95 17,450.00
-13.83
-13.83
1,464.60 -2.76 26
1464.60
-98.94 15,150.00
-3.19
-3.19 14,300 30.20 -34.49 13,039
30.20
-94.90 578,950.00
27.69
27.69
1,378.80 -6.84 2
1378.80
-99.00 650.00
0.00
0.00 14,350 39.15 -23.31 187
39.15
-92.94 6,450.00
101.56
101.56
1,348.45 -7.57 7
1348.45
-99.13 4,750.00
1.06
1.06 14,400 43.55 -18.37 6,094
43.55
-96.57 462,450.00
8.52
8.52
1,171.60 8.50 4
1171.60
-99.27 1,000.00
25.00
25.00 14,450 47.70 -18.67 271
47.70
-90.66 8,100.00
74.19
74.19
1,310.15 0.59 1,088
1310.15
-99.61 418,300.00
2.50
2.50 14,500 53.00 -16.80 51,020
53.0
-96.34 2,420,800.00
24.64
24.64
1,256.05 -4.48 26
1256.05
-96.29 1,950.00
-17.02
-17.02 14,550 56.50 -15.17 303
56.50
-90.68 10,500.00
38.16
38.16
1,198.35 -1.94 80
1198.35
-98.32 31,450.00
9.77
9.77 14,600 61.65 -15.66 9,536
61.65
-95.27 381,650.00
24.03
24.03
1,058.75 -8.12 10
1058.75
-95.00 3,450.00
4.55
4.55 14,650 67.65 -17.35 891
67.65
-71.71 27,300.00
261.59
261.59
1,125.95 -1.39 17
1125.95
-99.39 10,100.00
3.06
3.06 14,700 73.90 -13.92 10,588
73.90
-94.96 412,200.00
30.30
30.30
1,021.35 -12.33 12
1021.35
-95.20 7,600.00
4.11
4.11 14,750 78.75 -13.98 459
78.75
-96.01 31,400.00
4.15
4.15
1,017.00 -1.97 77
1017.0
-98.03 22,950.00
5.52
5.52 14,800 80.00 -20.91 12,471
80.0
-96.48 578,550.00
18.95
18.95
914.90 -8.28 9
914.90
-97.75 4,600.00
0.00
0.00 14,850 89.05 -16.27 381
89.05
-97.98 20,000.00
-2.91
-2.91
970.80 -3.07 90
970.80
-97.39 21,500.00
2.14
2.14 14,900 96.80 -17.05 6,347
96.80
-97.99 361,950.00
14.60
14.60
791.65 -14.65 16
791.65
-94.67 4,900.00
6.52
6.52 14,950 109.05 -12.69 698
109.05
-94.89 21,900.00
76.61
76.61
889.90 1.44 4,224
889.90
-98.32 438,300.00
-4.50
-4.50 15,000 119.00 -12.69 59,824
119.0
-97.13 3,042,050.00
15.54
15.54
758.00 -6.89 13
758.0
-96.75 3,850.00
2.67
2.67 15,050 125.25 -14.48 375
125.25
-95.28 14,250.00
20.76
20.76
802.60 0.53 418
802.60
-95.58 48,100.00
12.51
12.51 15,100 136.05 -13.78 8,695
136.05
-97.31 333,700.00
8.93
8.93
708.30 -10.00 13
708.30
-87.00 3,600.00
-1.37
-1.37 15,150 148.25 -10.80 647
148.25
-96.45 17,750.00
-16.08
-16.08
734.95 1.44 1,612
734.95
-96.92 84,850.00
12.16
12.16 15,200 160.05 -12.28 14,687
160.05
-97.40 696,150.00
11.07
11.07
656.00 -7.67 37
656.0
-93.83 7,700.00
2.67
2.67 15,250 170.30 -13.92 491
170.30
-95.71 23,150.00
16.33
16.33
661.00 2.29 3,018
661.0
-95.08 135,500.00
27.89
27.89 15,300 187.00 -10.46 13,161
187.0
-95.57 460,200.00
26.74
26.74
622.00 1.73 50
622.0
-99.47 10,300.00
11.96
11.96 15,350 199.00 -10.22 376
199.0
-98.57 17,200.00
-3.91
-3.91
585.35 1.13 5,899
585.35
-93.50 169,250.00
52.34
52.34 15,400 215.50 -10.34 18,258
215.50
-96.20 540,300.00
15.65
15.65
554.55 2.21 256
554.55
-94.25 13,850.00
-7.36
-7.36 15,450 231.05 -9.85 1,250
231.05
-92.19 31,250.00
13.02
13.02
523.00 1.66 32,687
523.0
-94.99 894,900.00
21.45
21.45 15,500 248.20 -9.17 75,896
248.20
-95.95 2,628,350.00
11.30
11.30
484.75 -1.66 1,110
484.75
-91.87 16,250.00
45.74
45.74 15,550 266.20 -9.35 1,655
266.20
-88.01 22,800.00
37.35
37.35
464.25 2.09 50,840
464.25
-80.70 544,250.00
134.64
134.64 15,600 286.55 -7.74 60,753
286.55
-91.76 1,026,700.00
52.17
52.17
423.20 -1.18 3,710
423.20
-79.78 22,900.00
56.85
56.85 15,650 303.50 -11.00 4,049
303.50
-84.89 36,650.00
49.29
49.29
402.00 1.54 75,962
402.0
-93.49 1,148,450.00
64.09
64.09 15,700 324.25 -8.30 61,101
324.25
-96.24 1,346,150.00
38.70
38.70
371.80 2.34 2,938
371.80
-94.30 41,050.00
37.06
37.06 15,750
Spot Price: 15752.05
345.25 -9.14 1,859
345.25
-97.39 47,800.00
11.81
11.81
347.00 1.69 54,153
347.0
-97.71 1,074,500.00
22.60
22.60 15,800 372.00 -6.93 35,427
372.0
-98.56 1,035,200.00
16.68
16.68
318.25 1.14 2,189
318.25
-97.95 41,050.00
-8.47
-8.47 15,850 395.00 -6.76 896
395.0
-98.72 24,600.00
-23.60
-23.60
294.30 0.15 20,390
294.30
-97.57 534,700.00
21.23
21.23 15,900 418.00 -6.57 5,212
418.0
-99.11 289,050.00
-8.69
-8.69
267.45 -0.30 648
267.45
-98.62 19,600.00
29.80
29.80 15,950 438.00 -7.71 146
438.0
-98.28 5,850.00
-0.85
-0.85
246.50 0.24 63,685
246.50
-97.24 2,019,150.00
12.06
12.06 16,000 472.00 -5.66 12,200
472.0
-98.69 951,700.00
0.39
0.39
225.60 0.20 1,267
225.60
-96.26 31,600.00
80.57
80.57 16,050 500.70 -2.39 101
500.70
-95.41 4,600.00
35.29
35.29
203.45 -1.09 11,586
203.45
-97.23 374,850.00
14.46
14.46 16,100 529.45 -5.61 920
529.45
-98.25 94,050.00
4.21
4.21
183.50 -2.88 628
183.50
-98.15 16,200.00
39.66
39.66 16,150 554.90 -4.43 104
554.90
-98.68 13,400.00
44.09
44.09
165.95 -2.09 19,964
165.95
-97.66 592,300.00
13.81
13.81 16,200 590.00 -5.00 2,335
590.0
-98.55 280,950.00
1.55
1.55
151.40 -0.79 1,090
151.40
-97.32 25,500.00
43.26
43.26 16,250 621.45 -3.32 267
621.45
-88.88 15,000.00
106.90
106.90
139.85 0.50 18,741
139.85
-95.62 434,750.00
35.02
35.02 16,300 652.50 -5.04 599
652.50
-99.02 91,000.00
-2.67
-2.67
121.80 -1.54 813
121.80
-96.43 21,750.00
45.48
45.48 16,350 689.00 -2.41 27
689.0
-99.32 4,550.00
-7.14
-7.14
106.00 -5.78 14,501
106.0
-97.33 407,100.00
25.53
25.53 16,400 729.35 -3.79 389
729.35
-99.40 217,450.00
0.49
0.49
94.90 -6.46 1,518
94.90
-96.60 47,350.00
120.23
120.23 16,450 770.00 1.60 16
770.0
-98.22 3,800.00
5.56
5.56
87.50 -4.63 52,446
87.50
-97.59 2,094,950.00
5.50
5.50 16,500 810.00 -3.14 2,141
810.0
-99.28 633,550.00
0.02
0.02
72.25 -11.51 874
72.25
-98.34 43,600.00
49.06
49.06 16,550 928.15 5.41 24
928.15
-96.31 3,900.00
-2.50
-2.50
67.90 -4.50 17,404
67.90
-95.60 399,650.00
28.77
28.77 16,600 881.45 -4.52 94
881.45
-99.68 34,100.00
0.44
0.44
58.85 -6.51 1,203
58.85
-97.77 36,700.00
-2.26
-2.26 16,650 924.25 -1.48 18
924.25
-97.00 2,600.00
4.00
4.00
51.55 -8.92 15,767
51.55
-95.34 429,300.00
33.20
33.20 16,700 966.25 -2.61 161
966.25
-99.74 57,850.00
-4.38
-4.38
45.20 -5.24 1,195
45.20
-96.67 26,000.00
-15.17
-15.17 16,750 1,134.40 10.88 2
1134.40
-99.60 3,200.00
0.00
0.00
30.00 -32.51 20,122
30.0
-96.90 643,450.00
42.15
42.15 16,800 1,054.40 -2.61 523
1054.40
-98.08 48,050.00
-17.65
-17.65
34.50 -12.44 572
34.50
-96.32 16,250.00
39.49
39.49 16,850 1,225.80 8.59 6
1225.80
-94.00 1,350.00
3.85
3.85
29.15 -16.83 10,115
29.15
-97.12 215,500.00
47.91
47.91 16,900 1,150.00 -2.95 99
1150.0
-99.21 19,000.00
0.53
0.53
26.20 -16.43 528
26.20
-96.73 17,850.00
13.69
13.69 16,950 1,318.20 9.53 6
1318.20
-88.00 150.00
50.00
50.00
23.50 -16.81 39,889
23.50
-98.44 2,246,750.00
14.05
14.05 17,000 1,241.00 -2.15 1,764
1241.0
-99.41 721,150.00
2.60
2.60
20.00 -20.00 494
20.0
-97.01 21,650.00
52.46
52.46 17,050 1,414.20 8.63 3
1414.20
-94.00 850.00
-5.56
-5.56
17.20 -20.55 5,357
17.20
-97.51 138,850.00
39.69
39.69 17,100 1,332.20 -1.73 25
1332.20
-99.55 6,900.00
11.29
11.29
15.25 -21.79 398
15.25
-96.00 10,000.00
34.23
34.23 17,150 1,447.00 3.30 8
1447.0
-84.00 750.00
15.38
15.38
13.05 -23.68 5,921
13.05
-98.01 191,000.00
13.96
13.96 17,200 1,411.20 -2.54 88
1411.20
-99.67 35,850.00
-1.65
-1.65
12.00 -23.81 916
12.0
-95.80 16,700.00
41.53
41.53 17,250 1,604.75 8.12 5
1604.75
-95.00 1,300.00
4.00
4.00
10.50 -25.80 4,993
10.50
-97.71 171,100.00
12.94
12.94 17,300 1,532.80 -0.48 44
1532.80
-99.85 29,750.00
-1.82
-1.82
9.40 -23.58 972
9.40
-93.03 12,050.00
0.84
0.84 17,350 1,707.40 5.72 8
1707.40
-92.00 600.00
0.00
0.00
7.60 -31.84 1,869
7.60
-97.42 99,450.00
33.94
33.94 17,400 1,660.00 1.33 24
1660.0
-99.81 15,900.00
-1.55
-1.55
7.60 -23.23 186
7.60
-99.24 13,050.00
3.57
3.57 17,450 1,799.00 9.03 10
1799.0
-96.00 400.00
33.33
33.33
5.45 -41.08 7,663
5.45
-98.70 716,250.00
9.62
9.62 17,500 1,714.45 -1.32 289
1714.45
-99.80 322,400.00
-0.71
-0.71
6.05 -27.11 200
6.05
-88.24 14,300.00
36.19
36.19 17,550 1,899.75 10.65 7
1899.75
-86.00 500.00
-16.67
-16.67
5.00 -32.89 1,734
5.0
-92.61 84,350.00
135.94
135.94 17,600 1,863.90 0.93 18
1863.90
-99.88 23,550.00
0.00
0.00
4.15 -34.13 11
4.15
-97.56 2,450.00
4.26
4.26 17,650 2,013.85 63.29 9
2013.85
-82.00 500.00
-23.08
-23.08
4.45 -28.80 626
4.45
-96.98 34,000.00
-2.86
-2.86 17,700 1,957.20 0.98 16
1957.20
-99.74 18,600.00
-0.53
-0.53
4.10 -22.64 41
4.10
-86.33 3,850.00
20.31
20.31 17,750 2,086.20 4.20 4
2086.20
-99.38 900.00
0.00
0.00
4.10 -20.39 456
4.10
-98.46 70,750.00
4.43
4.43 17,800 2,129.30 4.65 22
2129.30
-99.84 29,800.00
2.41
2.41
3.60 -30.10 50
3.60
-97.56 3,350.00
-9.46
-9.46 17,850 2,241.50 9.60 4
2241.50
-92.00 1,300.00
0.00
0.00
3.50 -23.08 131
3.50
-98.57 21,950.00
-6.00
-6.00 17,900 2,163.70 1.93 14
2163.70
-99.53 5,850.00
-4.10
-4.10
3.85 -33.62 19
3.85
-99.00 3,900.00
5.41
5.41 17,950 2,341.65 79.47 4
2341.65
-97.33 250.00
25.00
25.00
3.20 -15.79 5,469
3.20
-99.19 898,500.00
3.90
3.90 18,000 2,200.20 -1.08 949
2200.20
-99.58 750,200.00
-1.95
-1.95
3.30 -20.48 36
3.30
-95.76 2,100.00
27.27
27.27 18,050 2,408.65 6.58 2
2408.65
-96.00 50.00
0.00
0.00
2.90 -14.71 126
2.90
-98.64 8,000.00
-26.94
-26.94 18,100 2,425.65 4.26 10
2425.65
-99.86 5,650.00
3.67
3.67
3.40 -9.33 6
3.40
-99.14 800.00
14.29
14.29 18,150 2,503.15 0.00 4
2503.15
0.00 0.00
0.00
0.00
2.60 -11.86 90
2.60
-99.14 16,050.00
3.88
3.88 18,200 2,409.10 -0.62 10
2409.10
-99.85 18,700.00
0.00
0.00
3.75 -71.15 180
3.75
260.00 1,750.00
775.00
775.00 18,250 2,598.95 8.29 3
2598.95
-94.00 100.00
100.00
100.00
3.25 32.65 13
3.25
-99.77 16,250.00
0.62
0.62 18,300 2,501.10 -0.54 4
2501.10
-99.94 11,150.00
0.00
0.00
3.40 -2.86 3
3.40
-99.71 550.00
0.00
0.00 18,350 2,749.10 9.22 2
2749.10
-96.00 50.00
0.00
0.00
2.55 -3.77 24
2.55
-99.82 8,550.00
-0.58
-0.58 18,400 2,728.35 3.55 3
2728.35
-99.96 7,750.00
0.65
0.65
3.40 15.25 8
3.40
-96.80 4,150.00
-2.35
-2.35 18,450 2,801.65 0.00 2
2801.65
0.00 0.00
0.00
0.00
2.50 -1.96 3,514
2.50
-99.32 626,100.00
-1.23
-1.23 18,500 2,704.10 -0.45 266
2704.10
-99.90 558,050.00
1.08
1.08
2.70 -3.57 7
2.70
-98.92 4,750.00
0.00
0.00 18,550
2.70 20.00 90
2.70
-99.48 20,100.00
6.63
6.63 18,600 2,814.30 -0.90 4
2814.30
-99.76 3,400.00
0.00
0.00
2.15 -6.52 22
2.15
-95.11 3,750.00
1.35
1.35 18,650
2.40 -2.04 524
2.40
-99.38 124,550.00
-5.86
-5.86 18,700 2,898.70 -0.88 43
2898.70
-99.85 80,700.00
0.56
0.56
2.40 -9.43 57
2.40
-99.67 87,200.00
0.87
0.87 18,750 2,935.25 -0.53 141
2935.25
-97.94 17,600.00
49.79
49.79

Blogs

Bonus in Indian Oil Corporation: Implications on your F&O positions.

Indian Oil Limited has fixed a Record Date of July 1st, 2022 for the purpose of bonus shares in the ratio 1:2 i.e. One new bonus equity share of Rs. 10/- each for every Two existing equity shares of Rs. 10/- each fully paid up. The ex-date being June 30, 2021.

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What is Expiry day in F&O and how to trade on Expiry day?

An expiry day in the stock market indicates the end of an asset or contract. For derivatives trading in the futures & options market, the expiry date signals the last date of the contract, after which the contract is not valid. The expiry date impacts the Indian stock market, and traders must understand its repercussions to make the right trading decisions. 

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How can you hedge your positions in Futures and Options?

Hedging is one of the most crucial and useful applications of Futures and Options. It protects your trading positions from making losses in the event of adverse market movements. To hedge your positions in the Futures market, you can buy Put Options against your Buy trades and vice-versa.

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FII STATISTICS

Reporting Date Buy Amt Sell Amt Net Amt OI Value
Reporting Date June 29, 2022 4,691.35 7,104.43 -2,413.08 15,517.03
Reporting Date June 28, 2022 6,239.43 6,155.79 83.64 16,110.50
Reporting Date June 27, 2022 4,430.20 4,224.76 205.44 15,518.91
Reporting Date June 24, 2022 2,743.68 2,076.09 667.59 16,955.53
Reporting Date June 23, 2022 4,334.15 3,481.09 853.06 17,089.96

Most Active Contracts

  • Index

  • Stock

Company Name LTP() Volume Prev Close() OI
NIFTY-28-JUL-22 15,774.00 303,590.00 15,744.35 11,789,250.00
BANKNIFTY-28-JUL-22 33,734.95 157,462.00 33,396.95 2,478,300.00
Company Name LTP() Volume Prev Close() OI
NIFTY-28-JUL-22 15,774.00 303,590.00 15,744.35 11,789,250.00
BANKNIFTY-28-JUL-22 33,734.95 157,462.00 33,396.95 2,478,300.00

Watch Our Video to Know More

Options trading strategies

Advanced tools & features

The All New Markets Mobile App

Technical Charts on ICICIdirect

Derivative Market News

Nifty July futures at premium

The Nifty July 2022 futures closed at 15,774, a premium of 21.95 points compared with the ...

Jul 01, 2022 16:23

Nifty July futures trades at discount

The Nifty July 2022 futures closed at 15,718, a discount of 65.25 points compared with the...

Jun 30, 2022 16:20

Nifty June futures trades at discount

The Nifty June 2022 futures closed at 15,765.20 , a discount of 33.9 points compared with ...

Jun 29, 2022 16:15

Nifty June futures trades at premium

The Nifty June 2022 futures closed at 15,859.00, a premium of 8.80 points compared with th...

Jun 28, 2022 16:23

Nifty June futures trades at premium

The Nifty June 2022 futures closed at 15,838.05, a premium of 6 points compared with the N...

Jun 27, 2022 16:19

Nifty June 2022 futures trades at discount

The Nifty June 2022 futures closed at 15,697.90, a discount of 1.35 points compared w...

Jun 24, 2022 16:25

FAQs

A derivative is a financial contract whose value is derived from an underlying asset. These could range from equities and bonds to indices and currencies. Two or more parties can trade derivatives either on exchanges or over the counter. 

Futures are derivative contracts where two parties – a buyer and a seller – agree to trade a particular quantity of an underlying asset at a specific price on a particular date in the future. The contract is binding and has to be executed upon expiry. Futures are usually standardized contracts traded on exchanges, just like stocks. 

Options are derivative contracts between two parties where the buyer has the right but no obligation to buy or sell the underlying asset at a specific price on a specified day in the future. The seller, however, has an obligation to execute the contract should the buyer choose to exercise their right. 

 

The price at which the contract is entered is called the strike price. The buyer also pays a premium to the seller to buy the right to exercise the contract if the market conditions are favourable. This is the compensation paid to the seller to assume the risk of the contract. Another concept to know about in Options trading is the lot size. Every contract has a fixed number of underlying asset units in it. Options are traded based on their lot size. 

Futures are derivative contracts created on an underlying asset at a specific price on a specified future date. Both the buyer and seller have to honour the contract on expiration. On the other hand, options give the buyer the right, but not the obligation, to buy or sell a certain underlying at a specific price on a specified date in future. The buyer can choose whether or not they want to exercise the right. The seller has an obligation to honor the contract. This is the primary difference between the two derivatives. 

Additionally, futures require a higher margin requirement than options. The risks of trading in futures is also higher than options because of the unlimited losses they are exposed to.

Futures contracts are standardized derivative contracts between two parties where they are obligated to buy or sell an underlying asset at a particular price on a specified day in future. Futures are traded on exchanges, just like stocks. To trade in futures, you need to have a broking account with a verified brokerage in the country. Once you have the broking account, you can begin trading in futures.

The biggest advantages of futures contracts are:

  • They are standardized contracts that are traded on exchanges. 
  • Due to this, they have high liquidity. 
  • They have stable margin requirements that are known in advance. 
  • When it comes to options, the value of the contract declines over time. This is called the time decay of money. Since futures contracts are fixed in advance, there is no time decay to worry about. 
  • Futures can be used to hedge against price risks. 
  • Futures contracts are standardized derivatives contracts that can be traded on exchanges. 
  • They are available on several underlying assets such as stocks, indices, commodities, currencies, fixed income instruments, etc. 
  • You need to deposit a margin amount to trade in futures. 
  • Futures contracts have high liquidity. 
  • They can be used to hedge against price risks.

All futures contracts are settled in cash. The closing price of a Futures contract is the final settlement price. 

Buying options is similar to buying equities. All you need is a broking account with a registered member of the National Stock Exchange or the Bombay Stock Exchange. Once you open a broking account with a verified broker, you can begin trading in Options. ICICIDirect offers broking accounts using which you can trade in derivatives of any kind. 
Call options are derivative contracts that give the buyer the right, but not the obligation, to buy a specific asset at a specific price at a specific date in the future. The seller has an obligation to sell the underlying if the buyer chooses to exercise their call option. Call option buyers benefit if the price of the underlying goes up on the expiration of the contract. 
The put option is a derivative contract that allows the buyer to sell an underlying asset at a predetermined price at a specific date in the future, but not the obligation to do so. The seller has an obligation to buy the underlying if the buyer exercises their put option. Put option buyers benefit if the price of the underlying falls on the expiration of the contract. 
Options trading works just like stocks trading does. Options contracts can be bought and sold on exchanges. There are four positions you can take with options:
  • Buy call options
  • Sell call options
  • Buy put options
  • Sell put options

Call and put buyers have the right but not the obligation to buy or sell the underlying. The risks of buying call and put options are limited to the premium paid. However, call and put sellers have an obligation to honour the contract. The premium is the compensation they get for assuming the risk

The strike price is when an options contract is agreed to be executed. If the buyer of the option decides to execute the contract, then this is the price at which it will be settled. 
The strike price of options is determined based on the underlying asset’s price. The profitability of an options contract depends on the strike price, the premium paid, the time until expiration of the contract and value fluctuation of the underlying. 
An American Options contract can be exercised on or before the expiration date. European Options can be exercised only on the expiration date. 
These are two distinct Options strategies. If the trader holds the underlying asset when entering the contract, it is called a Covered Options strategy. If the trader does not hold the underlying asset, it is called a Naked Options strategy.