F&O or Futures and Options contracts are two main types of derivatives contracts in the market. In Futures trading, you can buy or sell an underlying security at a future date at a specified price. Both buyer and seller are obligated to fulfill the terms of the contract before the future expiry date.
Options trading gives the buyer an ‘option’ but not an obligation to buy or sell a security at a future date. The Option Writer is the seller in the contact and obligated to sell the security as per terms. The buyer pays a premium to the seller to possess the buy/sell option. The price of underlying security is known as strike price.