F&O commonly refers to Futures and Options, which are derivative financial instruments. Futures are contracts obligating the buyer to purchase or the seller to sell an asset at a predetermined future date and price. Options, on the other hand, give the buyer the right, but not the obligation, to buy (call option) or sell (put option) an asset at a specific price within a specific period. They are used for hedging against price fluctuations, speculation on future price movements, and arbitrage, allowing investors to profit from price discrepancies.
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