Navigating the Financial Frontier: A Comprehensive Analysis of Risk in Options vs. Futures
In the complex world of financial derivatives, investors often grapple with the question: What is riskier, options or futures? Both instruments serve unique purposes in hedging and speculation, yet they come with distinct risk profiles that can significantly impact an investor’s portfolio. This article delves into the intricacies of options and futures, examining their inherent risks, potential rewards, and the strategic considerations that investors must weigh when choosing between the two.