Understanding Futures and Options on Futures Futures contracts are legally binding agreements to buy or sell a specific asset at a predetermined price on a set date in the future. They are commonly used in various markets, including commodities, currencies,…
Options on Stocks: Increasing Leverage Options are leveraged trading instruments. This means that buying or selling an option gives the trader the ability to control a larger trading position with a smaller amount of capital outlay. Each stock option typically…
Introduction to Asset Classes Asset classes are categories of investments that share similar characteristics and behave similarly in the marketplace. They provide a structured way for traders to diversify their portfolios and manage risk effectively. An asset class is essentially…