F&O trading is commonly utilized by various types of market participants, including:

• Hedgers: Hedgers use F&O contracts to minimize their risk against price movements in the underlying asset. For instance, a farmer might sell futures contracts on their produce to secure a fixed price for their harvest, regardless of future price changes.
• Speculators: Speculators enter F&O contracts to profit from anticipated price movements. For example, a trader may purchase futures contracts on oil if they predict that oil prices will rise in the future.
• Flexibility: Intraday traders have the ability to buy and sell throughout the trading session, providing them with substantial flexibility.
• Arbitrageurs: Arbitrageurs leverage F&O contracts to take advantage of price differences across markets. For example, an arbitrageur may buy a futures contract for a stock on one exchange and sell the same futures contract on another exchange if a price variation exists.

F&O trading involves complexity and risk, but it can also be highly rewarding. Traders who possess a strong understanding of market dynamics and associated risks can use Futures and Options contracts to achieve significant profits.