What trading is better, F&O or intraday?

Short Answer

Intraday is feasible if you have enough capital and are aware of the stock's performance, while F&O helps in the prediction of the price whether it would rise or fall to book profits.

Detailed Answer

Typically, people think that trading in the stock market only revolves around buying at a cheaper price and selling at a higher price. While they aren't wrong, there are multiple other ways to book profits in a similar outcome in the stock market. For example, f&O and intraday are among the most popularly used trading methodologies to execute trades, respectively. However, if you wish to know the difference, we have provided them below to help you figure out which one might be better.


Intraday trading is the type of trading in which users executed trades with cash and equity. It's mostly related to equity, wherein a definitive number of stocks are purchased at a lower price point and then sold at a higher price point. The only con of intraday trading is that the initial investment is quite higher as you have to purchase a higher number of shares to make any significant profits. Moreover, you have to pay brokerage fees that might eat up your profits based on the stockbroker chosen for trading.

Futures & Options or F&O

Futures is the "F" in F&O where it's quite similar to intraday, but then you aren't forced to buy a company's stock at full price. Instead, it would be either 5%-10% of the actual stock price, and you get these in lots. The duration to which you can hold these trades are longer based on your will and wish. You can book your profits as and when you desire. Taking these trades to the next day is also feasible.

Options are the "O" in F&O, the put and call section of the respective stock prices or indexes. In these types of trades, you are banking greatly on the prices of the stock to either go up or down. The average investment is quite lower, which spans 5%-10% of the original stock price. Here you have to buy in lots of 100 or 250 to get some profit margin.

Over here, there are call and put options. The call is where you think the price would rise from a particular point and put where it would decrease from that point. If the price raises, then you sell them and book profits. Put is where you get the stocks at the price point from where you entered and can book profits by selling them. You don't have to pay the prevailing prices of the stock to purchase it.

F & O vs. Intraday Trading - Which ones seem to be better?

Looking over both the trading parameters, you realize that intraday is safer considering that you can keep trading for days together and wait for your profits to rise before booking them. However, the capital is extremely high, but the risk associated is lower apparently.

In F&O, there is no need to have a higher capital; instead, you need to have a correct mindset of knowing how the stock would react and how you can make profits. It's quite risky, and losing money is extremely higher.

Therefore, based on your preference, choosing the right one as any of these two options should help to reap profits provided you know how to trade and read charts to know the perfect entry and exit points.

Tagged With: intradayf and ofuturesoptionsrisk reward ratio
Categories: Stock Trading
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Discussion (5)

Most important thing about Intra day trading is timing the market. If one has sufficient time to devote to intra day trading and analyzing the market, then he/she can go for it.

Intraday trading is a better option than F&O because the relative volatility is lower and the risk of losing money is lower, but F&O is best if you want to make more money and have less capital because leverage is offered and, if traded carefully, we can make good profit.

Definitely, Intraday trading seems to be a better option than F&O because the relative volatility is lesser.

When talking about which trading is better among F&O and Intraday trading both of them are equal. For beginners, Intraday trading can be considered ideal since it poses less risk and there is not much requirement of prior experience or knowledge. In F&O however, the trading activity can get very volatile and there are many factors and things to properly study and understand to effectively trade so it is recommended only for seasoned investors.

Trading in F&O and Intraday, both have their perks and drawbacks. F&O trading is a kind of leverage, and high-risk-high reward trading, whereas intraday equity trading, is comparatively less risky as you don't have to carry forward your position for more than a trading session. If you are familiar with Futures & Options, then trading them on an intraday basis might be best for you. By using hedged intraday strategies, in options, you can limit your overall risk and also try to gain as much within the same day.

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