Financial market investors are classified based on their time horizon.
Equity is an investment tool that doesn't have a time limit. It is suitable for investors who have a specific objective and a longer time horizon.
Futures and Options can be used as trading and hedging instruments.
Participants in derivative markets that have been exposed to an underlying asset. They wish to mitigate the risk by taking positions in F&O markets.
These market participants account for 70% of total participants. They have a very short-term view of the future direction of stock or market and build positions in F&O.
Participants who take risks to make profit by taking different positions on the same or different contracts (i.e. across calendar periods or across exchanges) in order to en-cash mispricing opportunities.