Full Form of FNO

What is FNO?

FNO stands for Futures and Options, which are derivative contracts traded on Indian stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Futures are agreements to buy or sell an underlying asset at a predetermined price on a specific future date, while Options give the buyer the right, but not the obligation, to do the same. In India, the FNO segment is extremely popular among retail and institutional investors for hedging, speculation, and arbitrage. It allows traders to manage risk and leverage positions with a smaller capital outlay compared to the cash market. The FNO market is regulated by the Securities and Exchange Board of India (SEBI) and operates with standardized lot sizes and expiry cycles, typically weekly or monthly. Usage is widespread in day trading, portfolio hedging, and algorithmic trading strategies. For students preparing for NISM certification or SEBI exams, understanding FNO concepts is crucial as they form a core part of derivative market knowledge. The liquidity in Indian FNO contracts, especially on indices like Nifty and Bank Nifty, rivals global markets, making it a key driver of capital market activity.

FNO का फुल फॉर्म

Example

Many retail investors prefer trading in the FNO segment because it offers higher leverage and the ability to profit from both rising and falling markets.

FNO — frequently asked questions

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