What is future and options in share market?
1 answer(s)
Answer # 1 #
Futures and options are contracts, known as derivatives. Their value is tied to an asset, like a share or the ASX 200.
A futures contract is a firm agreement. You are obligated to buy or sell that asset at a set price on a future date.
An options contract is more flexible. It gives you the right, but not the obligation, to do the same. It's all about having the choice to buy or sell later.