Futures & Options

Derivatives trading for everyone

Derivatives are financial contracts whose value is derived from the performance of an underlying asset, such as a stock, bond, commodity, or currency. Options are a type of derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a certain date.

Derivatives and options are important tools that can be used by investors to protect their portfolios and to speculate on the future direction of markets. Both derivatives and options can be used to hedge against risk. For example, if an investor owns a portfolio of stocks that are vulnerable to a decline in the market, he or she could purchase put options on those stocks as a hedge. Or, if an investor is worried about the potential for inflation, he or she could purchase Treasury Inflation-Protected Securities (TIPS) or buy call options on commodities.

Derivatives and options can also be used to speculate on the future direction of markets. For example, an investor who believes that the stock market is going to rise could purchase call options on a stock index. Or, an investor who believes that the price of gold is going to fall could purchase put options on gold.

Derivatives and options can be used in risk management to protect against unexpected changes in the price of an underlying asset. Derivatives can be used to hedge against price changes in the underlying asset, while options can be used to protect against changes in the price of the underlying asset that exceed a certain threshold. WealthMark provides derivatives trading for everyone across more than 15+ global markets.