What is f&0?

hi friends!!

can anybody tell me what is F&0. how to trade on this ? (please give an example). what all this FUTIDX BANKNIFTY , OPTIDX NIFTY ?

thanks in advance..

I donot know exact technical terms.

But, I will try my level best to explain it.

Take a share ACC.

You can buy and sell it in cash segment. You can buy and sell on same day. You can buy and sell after taking delivery. Or you can sell and buy on the same day. R U clear? But, you cannot sell today to buy a few days later. Thatz the problem with cash segment.

This problem is solved with F&O. It stands for Futures and Options.
The problem with F&O is that you cannot buy and sell 1 share. You have to transact in the specific lot size as desided by exchange.
But here the drawback of cash segment ie selling today and buying after few days is removed. You can do that in F&O. But there is an exception. Last thursday of every month it will be settled.

There are lot of threads in this forum to explain it thoroughly.

Well explained Veluri.

FUTIDX........Future Index
OPTIDX........Option Index

You have 2 more.
FUTSTK......Future Stock
OPTSTK......Options Stock.

FUTIDX BANKNIFTY....Contains basket of 12 banking Stocks.More can be
found in NSE website www.nseindia.com

Try this site to know more about F&O www.investopedia.com.