Fundamentals of Stock Market: Chapter 7 | Future and Options (F&O)

In this video, we dive into the world of derivatives—specifically futures and options—using simple, relatable examples like real estate deals and milk by-products. Learn how these financial tools work in the stock market, their key differences, and the risks and rewards they offer.

What We’ll Cover:

• Derivatives Basics: How futures and options derive value from assets like stocks.
• Futures Explained: A commitment to buy/sell at a set price, with real-world examples.
• Options Unpacked: The flexibility to buy/sell without obligation, plus the role of premiums.
• Risks & Rewards: Comparing the financial commitment of futures vs. the strategic edge of options.
• Practical Insights: Why legal agreements and market timing matter in trading.

Perfect for beginners looking to grasp these essential trading strategies!