Futures and options are the major types of stock derivatives trading in a share market.
These are contracts signed by two parties for trading a stock asset at a predetermined price on a later date
These futures, and options are used for two main purposes.
One is to hedge against price risks;
Another is to profit from changes in prices or speculation.
Every future, and options contract needs to have a counterparty. Every buyer of a future or options contract needs to have a seller,