Futures and options can be used in the trade plan to mitigate the risk or increase the return in another/derivative trade.A futures contract is a type of derivative or financial contract, in which two parties agree to transact a set of financial instruments for future delivery at a particular price.A call option gives the buyer/holder the “Rights to buy” the securities asset at a certain price within a specific period of time. A put option gives the buyer/holder the “Rights to sell” the securities at a certain price within a specific period of time
Basics of Futures and Options
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