Understanding Options and Futures in Finance
In the world of finance, two essential concepts that play a significant role in trading and risk management are <strong>options</strong> and <strong>futures</strong>. Both are types of derivatives, meaning their value is derived from an underlying asset, which can range from commodities, stocks, indices, to currencies. This detailed article will explore the characteristics, differences, and applications of options and futures, offering insights into how these instruments work together in the financial markets....