Options

An option is a contract giving one party the right, but not the obligation, to buy or sell a financial instrument, commodity or some other underlying asset at a given price, at or before a specified date.

An option is a contract giving one party the right, but not the obligation, to buy or sell a financial instrument, commodity or some other underlying asset at a given price, at or before a specified date.

Futures

Futures are contracts between two parties to undertake a transaction at an agreed price on a specified future date.

Futures are contracts between two parties to undertake a transaction at an agreed price on a specified future date.

Derivatives

Derivatives are contracts which give the right, and sometimes the obligation, to buy or sell a quantity of the underlying, or benefit in another way from a rise or fall in the value of the underlying.

Derivatives are contracts which give the right, and sometimes the obligation, to buy or sell a quantity of the underlying, or benefit in another way from a rise or fall in the value of the underlying. It is the legal right that becomes an asset, with its own value, and it is the right that is purchased or sold.