Options

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset, such as a stock, at a specified price within a set time frame. There are two types of options: call options, which allow the purchase of an asset, and put options, which allow the sale of an asset. Options are used by investors for speculation, hedging risks, or leveraging positions. They offer flexibility in trading strategies, but come with higher risks and complexity compared to direct investments in stocks or other securities.