Options, futures et autres actifs dérivés - Pearson France (2024)

FAQs

Why are options better than other derivatives? ›

Flexibility: Options offer greater flexibility as holders can choose whether to exercise the contract, depending on market conditions. This flexibility is absent in some other derivative instruments. Risk and reward: Options provide a unique risk-reward profile.

Futures and options (F&O) are derivative products in the stock market. Since they derive their values from an underlying asset, like shares or commodities, they are called derivatives. Two parties enter a derivative contract where they agree to buy or sell the underlying asset at an agreed price on a fixed date.

Futures have several advantages over options in the sense that they are often easier to understand and value, have greater margin use, and are often more liquid. Still, futures are themselves more complex than the underlying assets that they track. Be sure to understand all risks involved before trading futures.

The transaction costs associated with buying and selling futures contracts are typically lower. This affordability appeals to active traders as it allows for more frequent trading without incurring substantial expenses. Options trading can be costlier due to the premium paid to acquire the right to exercise the option.

Futures offer higher potential profits but also higher risk, while options provide limited profit potential with capped losses. However, Options require lower upfront capital compared to futures.

The potential for loss is theoretically unlimited for the seller of a futures contract and is substantial for the buyer. Options, on the other hand, have limited risk for the buyer (the most you can lose is the premium you paid), but unlimited potential profit.

Example of Options on Futures

The most popularly traded S&P 500 contract is called the E-mini S&P 500, and it allows a buyer to control an amount of cash worth 50 times the value of the S&P 500 Index. So if the value of the index were to be $3,000, this e-mini contract would control the value of $150,000 in cash.

The biggest benefit of trading options versus stocks is that it requires considerably less money or buying power to purchase calls and puts than it does to buy or short-sell a stock directly.

When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.

For speculators, options can offer lower-cost ways to go long or short the market with limited downside risk. Options also give traders and investors more flexible and complex strategies, such as spread and combinations, that can be potentially profitable under any market scenario.

Why do people choose options trading? ›

Options trading provides an opportunity for traders to make gains from the change in the stock price without paying the purchase price in full, where only a premium amount has to be paid. Therefore, it is a type of trading that provides the flexibility of not purchasing securities at a certain price for some time.