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Learn Futures Trading | Hedging Futures » Entries tagged with "vanilla options"

Binary Options vs. Vanilla Options

In the trading market there are many forms of options, two are known as “Vanilla Options” and “Binary Options”, both have their pros and cons, and depending on your goals as well as risk portfolio you can select the one that is right for you.  This is a introduction to the two and their differences, a more in depth article will be added soon. Vanilla Options The vanilla option is a financial instrument that will provide the opportunity but not the obligation to take part in a future transaction on a specific underlying product.  What this means if the investor wishes to buy a put option, they have the opportunity to sell, whereas if they wish to take a call option they will have the chance to buy a certain quantity of … Read entire article »

Filed under: Futures Trading Strategies