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178 21039 Futures and Options
178 21039 Futures and Options
Risk Transfer
Price Discovery
How does trading futures and
options work?
Similar to stocks, gains and losses
are the result of price changes
How does trading futures and
options work?
Futures can be highly leveraged
Options risks differ depending on
position
How does trading futures and
options work?
A number of factors
to consider including
account type,
trading style
Traded through a
registered broker
K.C. Isgreat: A simplified,
hypothetical trading example
Do your
homework
Choose a broker
Enter into an
agreement
Make your first
trade
K.C. Isgreat: A simplified,
hypothetical trading example
The first trade….
K.C. Isgreat: A simplified,
hypothetical trading example
Futures
Transaction
Sell futures 950.00
Buy back futures 939.00
Total Return 11.00 11.00 x $100=$1,100