Day Trading Derivatives
One of the most popular day trading instruments is a financial contract called Derivatives, which, by definition, derives its price from the price of the underlying asset. There are three main types of derivative products:
Option: A contract that gives you the option or right to buy or sell at any time at a fixed price for future dates. The call option is called a call option and the put option is called a put. So if you think the price of the asset rises, you will buy a phone or sell that asset (or even at the same time). If you think the price goes down, you will buy a bearish or sell a phone call.