1. F&O trading has an excellent profitability opportunity but risks huge losses for novice traders. Hence, the execution must be done with utmost care.
2. F&O always trades with stop loss and profit targets. It applies to all leveraged positions.
3. With F&O, keeping the cost in check is necessary. Constantly monitor costs incurred in F&O. If you think F&O brokerage fees and other charges are low, you might be mistaken. F&O has a higher turnover rate, although at a lower percentage than equities.
4. You can trade options even if you need to know the market’s direction. The ability to pursue directionless strategies is one of the most enduring features of the F&O market. Combine options and futures to trade directional markets.
5. Options help to profit in volatile or lacklustre markets. These aspects of options make more sense than using options instead of stock trading.