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Futures are contracts that allows you to buy certain commodities at a certain price by a certain date. Unless closed out, futures contracts are binding and the buyer of the contract must be able to buy the commodities binded by the contract.
Options are contracts that gives you the RIGHTS but not the OBLIGATION to buy certain stocks or commodoties at a certain price by a certain date. The main difference is, you can choose to ultimately buy the underlying asset or not, its not binding on the buyer.
What else can I help you with?
What are the benefits of trading micro futures options compared to traditional futures options?
Trading micro futures options offers several benefits compared to traditional futures options. These include lower capital requirements, reduced risk exposure, and the ability to trade in smaller increments. Additionally, micro futures options provide greater flexibility and accessibility to a wider range of traders, making them a more attractive option for those looking to manage risk and diversify their portfolios.
Where can one find out more on commodity futures options?
If you want to find out more information about commodity futures options then you can go to the website Commodity World which is a free site where you can do research.
How does one learn about making money from futures and options trading?
There are several online websites that can teach a person about making money from futures and options trading. The best sources are talking to brokers in a Brokerage Firm.
In what ways are futures similar to options, and how do they differ from each other?
Futures and options are both types of financial derivatives that allow investors to speculate on the future price movements of assets. They are similar in that they both involve contracts that give the holder the right to buy or sell an asset at a specified price in the future. However, futures require the holder to fulfill the contract, while options give the holder the choice to exercise the contract. Additionally, futures are standardized contracts traded on exchanges, while options can be customized contracts traded over-the-counter.
Do futures contracts experience time decay?
Yes, futures contracts do not experience time decay like options contracts do. The value of a futures contract is based on the underlying asset's price and not affected by the passage of time.
What are commodities futures options used for?
Grain farmers use commodities futures options for getting their products on the market. Without commodities futures options, farmers would have a tough time selling their products.
What is a commodity futures trading brokers?
Commodity brokers specializing in futures and options trading offer charts, futures quotes,options prices, news, margin rates and advice. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives.
What are the benefits of trading micro futures options compared to traditional futures options?
Trading micro futures options offers several benefits compared to traditional futures options. These include lower capital requirements, reduced risk exposure, and the ability to trade in smaller increments. Additionally, micro futures options provide greater flexibility and accessibility to a wider range of traders, making them a more attractive option for those looking to manage risk and diversify their portfolios.
Where can one read reviews about Gold Futures and Options?
You can read reviews about Gold Futures and Options on financial websites like Investing.com, The Wall Street Journal, or Bloomberg. You can also check out forums and discussion boards dedicated to trading and investing to see what other investors have to say about their experiences with Gold Futures and Options.
What has the author Joseph D Koziol written?
Joseph D. Koziol has written: 'A handbook for professional futures and options traders' -- subject(s): Commodity exchanges, Financial futures, Futures, Option (Contract), Options (Finance)
Where can one find information about the website futures options?
There is a website called Gofutures, and they have information on futures options. The site has demos, charts, and graphs to show all the information.
What are derivative trades?
Derivatives are financial instruments that derive their price and values from their underlying asset. Examples of derivatives are options and futures. Both options and futures derive their value from their underlying stocks. Trading derivatives means buying options or futures instead of the stocks itself mainly for leverage.
Where can one find out more on commodity futures options?
If you want to find out more information about commodity futures options then you can go to the website Commodity World which is a free site where you can do research.
What is the explanation for the rationale of futures and options?
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What has the author Nick Battley written?
Nick Battley has written: 'McGraw Hill World Futures and Options Directory, 1990-1991' 'The Fitzroy Dearborn Directory of the World's Futures & Options Markets'
What is F and O investing?
i thinfk it has to dowith futures and options trading
What meant by F and O?
F & O stands for Futures and Options
