Options are different from most other things that are traded. As the name suggests, an option gives you the choice of whether a future transaction will take place, so you don’t go through this unless it is profitable to you. In return for this, you have to pay for the privilege of holding an option and that money is forfeit whether the option makes a profit or not (called “expiring worthless”). Options have a whole science to themselves, which uses a Greek letters for various factors.

These factors include the current value of whatever is proposed to be traded in the future, and how long it is until the trade is scheduled to take place. The buyer of an option has the choice of price, and that affects how much the option costs. Options can be profitable, and some firms allow spread betting on options, but unless you are experienced you are advised to stay away. To explain all the details of options alone would require a guide larger than this one, so this summary will suffice.