What are options and futures in trading?
An example of an AI chatbot conversation about options and futures in trading.
What are options and futures in trading?
Options and futures are financial derivatives that allow traders to speculate on the future price of assets.
How do options differ from futures?
Options give the right to buy or sell an asset at a set price, while futures obligate the buyer to purchase the asset.
Can you explain how to trade options?
To trade options, you need to choose a strategy, select the underlying asset, and decide on the expiration date and strike price.
What are the risks involved in trading futures?
Futures trading involves significant risks, including market volatility, leverage, and the potential for substantial losses.
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