Options and futures -A Insight

Safe returns and minimal loss --thats what a small investor used to dream when he ventures into stock market .But it requires a painstaking effort to have a zest of the lucrative tools and instruments that is available in market
Here is a little insight into such tools - opiton and futures
Option:--A stock option is a contract that gives to its holder the right but mind you not the obligation to buy or sell shares of the underlying security at a specified price on or before a given date
An investor can reap following benefits from options :
1)Protection of stock holdings from a decline in market price
2Increased income against current stock holdings
3)purchase of stock at a lower price
4)Benefit from the big market move without knowing the direction of move
5)Benefit from the rise and fall of the stock without the cost of actually buying or selling the stock
Futures:-The most speculative and risky of all markets in investment arena is the futures market
Futures contract is basically an agreement between the two parties to commits one party to sell a commodity or security to the other at a given price on a specified future date
Futures even confused with options , but important difference exist between the two instruments , in option the buyer purchases the right and only the writer only takes on the obligation on the other hand in futures both the side holds the obligation , it obligate the buyer to buy and seller to sell at a specified price at a specified date
I hope it will not confuses , any queries are cordially invited
Cautious note : Don't Act fast Do Think before investing