Can an NRI trade in futures and options?

Yes, NRIs are allowed to invest in the futures & options segment of the exchange out of Rupee funds held in India on a non-repatriation basis, subject to the limits prescribed by SEBI.

Futures and options are derivative instruments, meaning their value is derived from an underlying asset like a stock, index, or commodity. Futures are contracts obligating the buyer to purchase and the seller to sell the asset at a predetermined price and date. Options, on the other hand, give the buyer the right, but not the obligation, to buy (call option) or sell (put option) the underlying asset at a specific price by a certain date. While F&O trading can offer opportunities for high returns, it also carries significant risk and requires a good understanding of market dynamics.

For more details on how to open an NRI account, click here!