Investors can use interest rate options to speculate on the direction of interest rates or to hedge a portfolio of Treasury securities. Investors can establish a position in either price based options or rate based options to achieve their objective.

Need Help Passing Your Series 4 Exam?

Price Based Options

Related Articles
  1. Trading

    Trading Options on Futures Contracts

    Futures contracts are available for all sorts of financial products, from equity indexes to precious metals. Trading options based on futures means buying call or put options based on the direction ...
  2. Trading

    How to Make Money by Trading Index Options

    Index options are less volatile and more liquid than regular options. Understand how to trade index options with this simple introduction.
  3. Investing

    Why Options Trading Is Not for the Faint of Heart

    Trading options is not easy and should only be done under the guidance of a professional.
  4. Trading

    Getting acquainted with options trading

    Learn about trading stock options, including some basic options trading terminology.
  5. Trading

    Getting Started In Forex Options

    Stocks are not the only securities underlying options. Learn how to use FOREX options for profit and hedging.
  6. Trading

    A Quick Guide To Debt Options

    A look at trading options on debt instruments that include U.S. Treasury bonds and other government securities.
Frequently Asked Questions
  1. What Is a Holistic Marketing Strategy?

    Understand what holistic marketing is, and learn how the components of this strategy work when applied to different business ...
  2. What's the First Stock Warren Buffett Ever Bought?

    Find out about Warren Buffett's first experience in stock market trading. Learn some of the Berkshire Hathaway CEO's basic ...
  3. When Is a Put Option Considered to Be 'in the Money?'

    Learn about put options, how these financial derivatives work and when put options are considered to be in the money related ...
  4. What Are Some of the Top Hostile Takeovers of All-Time?

    Learn about some of the most noteworthy hostile takeovers in history, including the KKR acquisition of RJR Nabisco and the ...
Trading Center