Futures and Options Trading Guide 2021 What are Futures and Options? Futures and options are the types of stock derivatives which are highly traded in a share market. These are similar to the agreement signed between two parties. These parties agree to carry out trading in the stock asset. The contract is signed at a predetermined price but on a later date. These types of arrangements try to mitigate the risk involved in trading the stock market by fixing the amount of trade beforehand. Futures and options in the stock market are agreements which derive their amount from an underlying security or asset including stock market indices, share, ETFs, commodities and more. Futures and options basically allow traders to diminish the future risk with their investment through the pre-decided prices. But, it can also lead to considerable losses or profits if one fails to predict the accurate direction of the price movements. Generally, the one who is well-versed in knowledge and with the o...