"STUDY ON FUTURE AND OPTIONS

MARKET IN INDIA"

Ms.vidya Anantrao Karale

PRN.No.2021017000286016
 Synopsis

"STUDY ON FUTURE AND OPTIONS MARKET IN INDIA"

Introduction

Futures and Options (F&O) are “derivative products” in the stock market.
Since they derive their values from an underlying asset, like shares or.
commodities, they are called derivatives. Two parties enter a derivative.
contract where they agree to buy or sell the underlying asset at an agreed
price on a fixed date.

An option gives the buyer the right, but not the obligation, to buy (or sell)
an asset at a specific price at any time during the life of the contract. A
futures contract obligates the buyer to purchase a specific asset, and the
seller to sell and deliver that asset, at a specific future date.
 Significance of future and option market

A Future is a contract to buy or sell an underlying stock or other asset at a pre-

determined price on a specific date. On the other hand, Options contract gives
an opportunity to the investor the right but not the obligation to buy or sell the.
assets at a specific price on a specific date, known as the expiry date.

Future:
A futures contract allows an investor to speculate on the price of a financial
instrument or commodity. Futures are used to hedge the price movement of
an underlying asset to help prevent losses from unfavorable price changes

Option:
For speculators, options can offer lower-cost ways to go long or short the
market with limited downside risk. Options also give traders and investors
more flexible and complex strategies such as spread and combinations
that can be potentially profitable under any market scenario.
 Objective of future and option market

The objective is to counter losses by locking in the future price of the underlying. Unlike
forward contracts, these are standardised exchange-traded contracts which are highly
liquid and have low counterparty risk.

Future and options in the share market are contracts which derive their price from
an underlying asset (known as underlying), such as shares, stock market indices,
commodities, ETFs, and more. Futures and options basics provide individuals to
reduce future risk with their investment through pre-determined prices.
 Function of future and option market

A Future is a contract to buy or sell an underlying stock or other asset at a pre-determined

price on a specific date. On the other hand, Options contract gives an opportunity to the.
investor the right but not the obligation to buy or sell the assets at a specific price on a
specific date, known as the expiry date.

Future:
A futures market is an auction market in which participants buy and sell commodity
and futures contracts for delivery on a specified future date. Futures are exchange-
traded derivatives contracts that lock in future delivery of a commodity or security at a
price set today.

Option:
Option Markets. Options are among the most important inventions of contemporary
finance. Whereas a futures contract commits one party to deliver, and another to pay.
for, a particular good at a particular future date, an option contract gives the holder the
right, but not the obligation, to buy or sell.
 Need & significance of the study future and option
market

Need:
Futures and options represent financial products that investors can make
use of for making returns or to act as a hedge against any current investments
they possess. Both a future and an option allows any investor to purchase any
investment at a particular price by a particular time and date.

Significance of future:
A futures contract allows an investor to speculate on the price of a financial
instrument or commodity. Futures are used to hedge the price movement of
an underlying asset to help prevent losses from unfavorable price changes.

Significance of option:

For speculators, options can offer lower-cost ways to go long or short the
market with limited downside risk. Options also give traders and investors.
more flexible and complex strategies such as spread and combinations that
can be potentially profitable under any market scenario.
 Objectives of study

Study of future and option market management system

1) To focus Stick Job working future and option market management system

2). To discuss the process of future and option market system in future of
organisation.

3). To industry fly to performance to option and future market in India.

4). To get benefit of future and option market in society.

5). To study the future and option of the technical analysis and fundamental.

6). Suggestional some members of improve the financial statement of

future and option market system.
 Hypothesis of study

H1). Future and option market in future trading challenging was having
positive effect on study.

H2). The role future and option market is positive in trading organisation.

H3). Future and option market trading system was increase the self employ
ability.
 Research methodology

A Future is a contract to buy or sell an underlying stock or other asset at a pre-

determined price on a specific date. On the other hand, Options contract gives an
opportunity to the investor the right but not the obligation to buy or sell the assets
at a specific price on a specific date, known as the expiry date.

1). Data collection.

1.1). Primary source:

An options contract is an agreement between two parties to facilitate a potential

transaction involving an asset at a preset price and date. Call options can be
purchased as a leveraged bet on the appreciation of an asset, while put options.
are purchased to profit from price declines.

1.2). Secondary source:

The secondary market, also called the aftermarket and follow on public offering,
is the financial market in which previously issued financial instruments such as.
stock, bonds, options, and futures are bought and sold.

2). Definition:

A Future is a contract to buy or sell an underlying stock or other asset at a pre-

determined price on a specific date. On the other hand, Options contract gives an
opportunity to the investor the right but not the obligation to buy or sell the assets
at a specific price on a specific date, known as the expiry date.

•Management information system.

MIS stands for Margin Intraday Squareoff. NRML stands for Normal Product. CNC
stands for Cash and Carry. If an order is placed under MIS, it will get squared off
automatically.
MIS should not merely provide past of historical information; rather it should
provide information, on the basis of future projections on the actions to be
initiated. 6. Integrated: Integration is significant because of its ability to.
produce more meaningful information.
 Expected contribution

The present project report will.

•Both futures and options are traded in the derivatives segment in the
market and used as instruments to hedge against market trend change.

to buy or sell an asset on a future date at a
•Holding a futures contract allows you
predetermined price.
Options contracts are of two types – call and put. The call option gives rights to the
buyer to purchase an underlying at a pre-decided price during the liquid life of the
contract. Conversely, a put option lets the buyer sell a stock or index during the.
duration of the contract. Understanding what F&O in share market is will help you
to plan better strategies.

 Chapter scheme

Sign of research student

Ms. Vidya Anantrao karale

PRN.2021017000286016