What Makes F&O So Risky?

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niveza
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Joined: Wed Feb 22, 2017 3:48 pm

What Makes F&O So Risky?

Post by niveza » Fri Jan 19, 2018 5:56 pm

As mentioned above, the stock market is extremely risky, to begin with. This quantum of risk gets multiplied in the F&O trading. Amongst various reasons that make it very risky, one is that it is a contractual trading. All the F&O scrips have a certain time-frame. For example, if you enter a contract on 1st June for the June scrip, your contract will expire on the last Thursday of the June. Unlike equity, where you can hold the position till the desired target is reached, in F&O you have the obligation to square off your position on the stipulated time.

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