How to make money trading derivatives is a question that many people ask, as derivatives can be a complex and risky investment. However, with the right knowledge and strategies, it is possible to make money trading derivatives.
Derivatives are financial instruments that derive their value from an underlying asset, such as a stock, bond, commodity, or currency. There are many different types of derivatives, but the most common are options and futures. Options give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. Futures contracts obligate the buyer to buy or sell an underlying asset at a specified price on a certain date.