What are futures contracts?

A future is an exchange-traded forward contract. In reality, most futures trading occurs without physical delivery of any asset whatsoever and the number of parties entering and exiting these contracts is unlimited...
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How does option contract work?

An option is a financial contract between two parties – option writer (seller of the contract) and option holder (buyer of the contract). Holder receives a right to buy (call) or sell (put) a specified financial asset...
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