FUTURES AND OPTION

In a Derivative market, we can either deal with Futures or Options contracts. In this we focus on understanding what do Futures mean and how best to derive the most from trading in them.

A future is a right and an obligation to buy or sell an underlying stock at a predetermined price and deliverable at a predetermined time. Options are a right without an obligation to buy or sell an equity or index. A call option is a right to buy while a put option is a right to sell.