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Preetesh Ghatke
New to stock market.
Asked a question 7 months ago

Does a high volume in F&O trading impact the underlying prices of the derivatives?

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No, High volume only indicates there are large number of trader ate sticked to a particular strike. 

 

Nothing related to its underlying asset.

Naresh Janagam
Full-time Learner & Part-time trader

As per my knowledge, 
Derivatives price depends on underlying asset price. Along with that other factors like greeks, Expiry, Dividends, etc also make an impact on F&O prices.

The high volume will help traders from huge fluctuations in price movements and freak trades.

Traders' participation creates volume, Volume doesn't generate trades.

Thank you