India, Jan. 4 -- The stock market offers many ways to grow wealth, and one such method is trading in F&O, or Futures and Options. While it promises higher returns, it comes with higher risks too. For retail investors, understanding how F&O works and the dangers involved is key before stepping in.

What is F&O and How to Trade? Futures and Options (F&O) are types of financial contracts derived from underlying assets like stocks, indices, or commodities. A futures contract obligates the buyer or seller to buy or sell an asset at a predetermined price on a specific date. An options contract gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on a specified date in the future. Unlike futures, losses for b...