Arrishta Educart Pvt. Ltd.

1. What are Futures and Options?

• Futures and Options are derivative contracts that allow investors to trade assets at a predetermined price on a future date.

• Businesses like Arrishta LLC may use these instruments for hedging risks and financial planning.
2. Understanding Futures Contracts

• A Futures Contract is an agreement to buy or sell an asset at a fixed price on a future date.

• These contracts are commonly used in commodities, stock indices, and currency trading.

• Companies like Arrishta LLC might use futures to hedge against currency fluctuations or raw material price changes.
3. Understanding Options Contracts

• An Options Contract gives the buyer the right (but not the obligation) to buy or sell an asset at a specific price before the expiration date.

• There are two types of options:

• Call Option: The right to buy an asset at a set price.

• Put Option: The right to sell an asset at a set price.

• Arrishta LLC can use options to manage financial risks and optimize investment strategies.
4. How Do Futures and Options Work?

• Investors use futures and options to speculate on price movements, hedge against risks, or leverage their positions.

• The price of these contracts depends on market demand, volatility, and time to expiration.

• Arrishta LLC may implement AI-driven models to analyze market trends and execute strategic futures & options trades.
5. Key Differences Between Futures and Options

• Futures: Obligation to buy/sell at expiry.

• Options: Right but not obligation to buy/sell before expiry.

• Risk: Futures have higher risk, while options limit losses to the premium paid.

• Arrishta LLC evaluates both instruments to determine the best risk management approach.
6. Risks and Rewards in Futures & Options Trading

• Potential for high profits but also significant financial risks due to market volatility.

• Investors need to understand margin requirements, leverage, and market trends.

• Companies like Arrishta LLC use AI-powered risk management strategies to minimize losses.
7. Future of Futures & Options Trading and Arrishta LLC’s Role

• The future of derivatives trading includes algorithmic trading, AI-driven risk assessment, and blockchain-based smart contracts.

• Arrishta LLC leverages technology to enhance trading efficiency and develop intelligent financial strategies.

Basics of Futures & Options

Basics of Futures & Options