sir wt is th mean of futur and option and how one trade in this market

sir wt is th mean of future and option and how one can trade in this market...

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Grudun answered a question in General Market.
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Grudun answered one year ago …

Futures are contracts for the delivery of the specified commodity at a certain time(either after a harvest or monthly) and place(normally a specific port). These are used to trade on expectations of the future prices of different commodities such as gold, iron, corn, wheat, or oil. The futures contracts help the producer because it gives them a guarantees they sell some of their crop/production at the current price regarless of the direction of the commoditees price.
Options are contracts that give you the right but not the obligation to buy or sell a certain number of shares of stock at a specified price. A call option gives you the right to buy a stock at a given price regardless of the current value and a put option gives you the right to sell a stock at a given price regarless of its current value. These are used to generate additional returns from currently held stocks or to bet on a stock's movement with leverage. Option contracts do have an expiration date where if they are not acted on by the end of that trading day they expire worthless.
You can trade options through a standard brokerage account depending on your exchange's rules and you can trade futures through specialty brokerages who offer this service. I DO NOT RECOMMEND trading futures or options until you have a solid understanding of the market, have done a lot of research into the advantages and disadvantages of different investment vehicles and have at least 6 months of trading under your belt.

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