Futures and Options Trading

Futures and options trading are financial contracts used to buy or sell assets at a predetermined price on a future date. A futures contract obligates the buyer to purchase, and the seller to sell, the asset at that price, regardless of market fluctuations. Options give the buyer the right, but not the obligation, to buy (call option) or sell (put option) the asset at a specified price, allowing for more flexibility. Investors use these tools to hedge against risks or speculate on market movements, potentially gaining profits or managing losses in volatile markets.