What is trading options based on futures?

Trading options based on futures means buying or writing call or put options depending on the direction you believe an underlying product will move. Buying options provides a way to profit from the movement of futures contracts, but at a fraction of the cost of buying the actual future. Buy a call if you expect the value of a future to increase.

Should you trade futures options or a straight Futures contract?

Many new traders start by trading futures options instead of straight futures contracts. There is less risk and volatility when buying options compared with futures contracts. Many professional traders only trade options. Before you can trade futures options, it is important to understand the basics.

Should you invest in futures or options?

Futures and options assets are heavily leveraged with futures usually seeing a harder sell than options. You are more likely to hear about the profit you can make in the future by fixing an advantageous price. What you are less likely to hear is that the margins can work both ways.

What is futures trading & how does it work?

Futures trading provides investors with a fast and cost-effective means of accessing global financial and commodity markets. Investors can speculate or hedge on the price direction of the particular security or instrument they're trading. This is done by purchasing a futures contract.