-=> Paul Zagoridis wrote to Phillip Lynch <=- 
-=> On 03-15-95 about Share Market <=-

PZ>Phillip Lynch ---> All:

PZ>PL> Could someone please tell me the difference if any between
PZ>PL> these three market areas (or are they one).

PZ>No they are not one.

PZ>PL>                          a. Options
PZ>A right (but not an obligation) to participate in a financial
PZ>transaction in the future.

PZ>PL>                          b. Futures
PZ>A contract (and hence an obligation) to participate in a financial
PZ>transaction in the future.

PZ>PL>                          c. Derivitives

PZ>A general term for transactions that are linked to some other
PZ>underlying security or property. Options, Futures and Swaps are
PZ>examples of  derivatives.

......cut.....

I found your reply to Phillips post informative very easy to understand.  
I'm relatively new to the markets, (18 months or so) and still learning 
about trading shares, but some time in the near future I'm wanting to 
learn how to trade in options. My starting point being subscribing to 
Chris Tates Option Trader newsletter, and the purchase of his book, 
Understanding Options Trading in Australia. 



Regards, Graham from Sunbury

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