----- Original Message -----
From: "GoldCom Admin." <[EMAIL PROTECTED]>
To: "e-gold Discussion" <[EMAIL PROTECTED]>
> While I haven't traded commodities futures, I have fiddled around with
> options (which
> apply to equities) and my uderstanding is that options are essentially
> the same thing
> as futures --"a contract giving you the 'option' to buy or sell
> something at a specified
> 'future' date".
I am under the impression that an option contract grants a person the right
but not the obligation to purchase whatever is specified in the contract, be
it stocks or commodities.
When you purchase a futures contract, you are -obligated- to make good on
the terms of the contract. If you buy a future for oil, you can expect the
amount of oil specified in the contract to be delivered to your doorstep (in
barrels) at the time/price specified in the contract unless you sell the
contract to someone else, either before it's too late or for a profit.
An options contract will be allowed to expire worthless at the specified
time/date if you do not "opt" to buy or sell the given product. Likewise you
can always sell you option to someone else.
Right?
Joe
www.loavesandfishessoupkitchen.com
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