How to easy understand Future & Option ?(Pankaj Singh)

Future and option trading can be difficult to understand, but here are some basic explanations to help you grasp the concepts:

 Futures: A futures contract is an agreement to buy or sell an asset (such as a commodity or currency) at a specific price on a specific date in the future. Futures are often used by businesses or investors to lock in prices for goods or currencies that they expect to buy or sell in the future.

 Options: An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price on a specific date in the future. 

There are two types of options: call options, which give the buyer the right to buy an asset, and put options, which give the buyer the right to sell an asset.

 In simple terms, Future trading is an agreement to buy or sell an asset at a specific price on a specific date in the future. And Option trading is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specific price on a specific date in the future. 

 It's important to note that both futures and options trading can be risky and involve significant financial losses if not executed properly. It's important to do your research and understand the risks before investing in these types of trades.