The Power Of Options And Derivatives Trading

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🕒 12:37 AM

📅 Sep 24, 2025

✍️ By theLNS

Derivatives trading, such as options and futures contracts, allows investors to speculate on the price of an asset without actually owning it, and this is a very good thing overall.

It's true that options, in particular, give the buyer the objective right to buy or sell an asset at a future price and date, and this flexibility offers the opportunity to profit in both rising and falling markets.

There's no denying that these financial instruments are widely used for hedging, but they are also used for leverage, allowing a smart trader to control a large position with less capital, amplifying both gains and losses and benefiting more than harming their financial health.