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Buying Options on Futures Contracts: A Guide to Uses and Risks

Wed, May 16 2007, 09:14 GMT
by National Futures Association NFA

National Futures Association


National Futures Association is a Congressionally authorized selfregulatory organization of the United States futures industry. Its mission is to provide innovative regulatory programs and services that ensure futures industry integrity, protect market participants and help NFA Members meet their regulatory responsibilities.

This booklet has been prepared as a part of NFA’s continuing public education efforts to provide information about the futures industry to potential investors.

Disclaimer: This brochure only discusses the most common type of commodity options traded in the U.S.—options on futures contracts traded on a regulated exchange and exercisable at any time before they expire. If you are considering trading options on the underlying commodity itself or options that can only be exercised at or near their expiration date, ask your broker for more information.




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