The derivatives market plays a crucial role in the economic development of a country. The objective of this study is to examine the impact of financial derivatives, specifically futures and options, on market volatility. Financial derivatives, including futures and options, have gained immense popularity in the world of finance and are widely used globally. This growth has been so rapid that it is now referred to as the derivatives revolution. In India, the development and growth of the derivatives market has been particularly pronounced. This study focuses on exploring the use of futures and options in the Indian stock market and aims to provide insights and recommendations to investors on how they can maximize their profits in the derivative markets.