What is Future And Option Trading?

Future and options are the two major and most common forms of derivatives. A lot of professionals are making this future and option trading a easy way to earn money through the trading business. These derivatives can be termed as the financial instruments that drive or gain their value from the underlying products which are basically the currencies of any nation, gold or the stocks or equities of any company. Future and option trading can be done in two ways namely exchange trade and over the counter (OTC). As the name signifies the exchange trade is done or conducted through various exchanges across the globe and is quite similar to the share trading business. OTC (Over the counter) derivatives are not traded in exchanges instead these products are not standardized. 

The future and option trading is basically the contracts that allow someone to buy or sell the underlying asset products at a predetermined specific time and price. Futures are related to predetermine time and options are related to predetermine price. Each future contract has four general features like buyer, seller, price and expiry. The future contracts are available on few common assets like currencies, stocks, indices and commodities. The options are basically the call option or put option which is associated with buying and selling respectively. The future and optiontrading is done by the skilled professionals and a lot of research works need to be done on the market conditions to manage these kind of trading business.