Advanced Trading

Dec 1, 2024

The intended reason that companies or investors use options contracts is as a hedge to offset or reduce their risk exposures and limit themselves from fluctuations in price. Because options traders can also use options to speculate on price or to sell insurance to hedgers, they can be risky if used in those ways.

In all, it is not gambling but is a type of speculation hence a government employee and PSU servants are not allowed to trade in options.