The
futures option refers to an option on a futures contract.
This type of option applies to both commodity and financial
instruments & when the contract is exercised it is settled
normally in cash.
Inherent
Risk of Futures and Options Trading: An
important factor to remember in dealing in futures and options
is that they can be extremely risky and volatile. Even with the
most sophisticated, state-of-the-art trading systems, you the
trader however astute
bear this risk. Never rely on a single source to base your investment
decisions on. Your investments, after all, may thrive or vanish.
The investor should always perform complete and thorough research
and analysis from multiple sources and always consult a professional
before making any investment
decisions.