Futures and options are a great way to trade in the market with lower investment
It is also a great tool to hedge your risk if you are investing in the equity market.
Call options is one of the only tools in which a person can make money if the price of the share falls over a period of time
Future is agreeing to buy a commodity at a pre determined price and the obligation to buy at this price .
Options is agreeing to buy a commodity at a pre determined price without the obligation to buy at this price .
Seller of futures or options collect premium from buyers in order to sign the agreement .