Three more contracts on price

- Futures are a contract to buy or sell on a set day at a price agreed today. In spring, a bakery and a farmer agree that in autumn the bakery will buy wheat at $200 per ton. Whatever the price is in autumn, both sides must keep the deal. Futures always have a date. They're traded on an exchange, a market that brings buyers and sellers together. - An option is the right, but not the obligation, to buy or sell at an agreed price before a set date. You pay for that right up front. You give a car seller $100 to hold a $10,000 price for you for a month. If the car gets more expensive, you buy at the old price. If you change your mind, you lose only that $100. - A binary option is a “yes or no” bet: will the price be higher in five minutes? Guess right and you get a payout known in advance. Guess wrong and you lose everything you put in.

Futures and options are more complicated than a contract for difference. We'll come back to them once you've mastered your first trades.