Futures and Options: Basics
The market crash of March, 2020 had not just baffled traders and investors but it also caught an eye of the general public
News about people multiplying their money when the markets all around the world were hitting circuit breakers was a part of everyone’s discussion
This was only possible with the crafty use of financial instruments called Futures and options. They are a set of complicated instruments, who by definition have no value of their one. On must wonder that how can something that has no value of its own lead to such massive gains and efficiently reduce risk?
Read along to understand them better.