Hedgers: Hedgers utilize F&O contracts to mitigate their risk of price fluctuations in the underlying asset. For instance, a farmer might sell futures contracts for their crop to secure a fixed price for their harvest, irrespective of market price changes.
Speculators: Speculators aim to profit from price movements in the underlying asset using F&O contracts. For example, a trader might purchase oil futures if they anticipate an increase in oil prices in the future.
Flexibility: Intraday traders benefit from the ability to trade at any time during the trading session, offering significant flexibility to respond to market changes.
Arbitrageurs: Arbitrageurs leverage F&O contracts to capitalize on price differences across markets. For example, an arbitrageur might buy a futures contract for a stock on one exchange and sell a futures contract for the same stock on another exchange if a price disparity exists.
