Egodeus

Credit Default Swaps: The Show Isn't Over

Options, futures and warrants are derivates, they're a contract to buy (call) or sell (put) a stock/valuta/commodity at a certain strike price in the designated future. With a bullish/bearish straddle or hedge, depending if you forsee a down/upward movement or fluctuation around an equilibrium strike price, you can minimize risk exposure, while getting a reasonable leverage.