Futures and options are great instruments for hedging ones investments against price volatility and for trading by speculators with smaller investments. However one needs to be very knowledgeable and disciplined to take advantage of these instruments. Several people have burned their fingers when they traded in these instruments without properly understanding them or traded with borrowed capital with an intention to get rich quick. However if some one gains good knowledge of futures and options he can play the game with more odds in his favor. Caution is the watch word here.