Welcome to Derivative Market.
This section explains about how to make money through derivative market using futures and options. First we need to understand the difference between spot market and future market.
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. Whereas in Futures a contract for assets (especially commodities or shares) bought at agreed prices but delivered and paid for later.
In addition there is also difference between futures and options which is obligations An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract. Further options is profitable to seller and buyer. Which can attained with two options which is call option and put option. A call option is an agreement that gives an investor the right to buy, but not the obligation, a stock at a specified price within specific time period. A put option is an option contract giving the owner the right, but not the obligation, to sell a specified stock at the specified time. It is not guaranteed that the seller will be benefited, so the seller decide to get premium from buyer (an amount to be paid to the seller by the buyer for making the contract) at the time contract. So before trading in Futures and Options make sure to understand the basic concepts involved in order to make desirable money.