4. Derivatives Trading (Futures and Options) Derivations involve contracts grounded on an beginning
4. Derivatives Trading (Futures and Options) Derivations involve contracts grounded on an beginning value similar as a stock or commodity. Futures contracts will obligate both the buyer and the dealer to complete the trade at a set price in the future, while options can go the buyer the right, but not the obligation, to do so. derivations are extensively used by educated dealers for hedging and influence openings.