Gold Options are less risky than futures because they don't have a "margin call". Like Stock Options you pay a premium to use someone's gold for a short period of time. This is usually in 30 day increments:

Gold Options are leveraged money. When You buy an Option on Gold you will control 100 ounces of gold for 30, 60, 90, 120 days etc. If you were to buy 100 ounces of gold you would pay 100 x current market price (say $1,000 per ounce) = $100,000. This would make sense if you were planning on owning it.

But with Gold Options, you are only interested in making money on market fluctuations over the next few months. You are only RENTING the gold!

PUT Options: Put Options give you are guaranteed buyer at a set price (say, 1,000 per ounce). You buy your option and gold goes down $10 per ounce. If you bought "in the money" you can sell the option and pocket $10 x 100 ounces = $1,000

CALL Options: Call Options are bought buy the person that sees the market price going up for gold in the near term. Thus if gold went from $1,000 per ounce to $1,010 dollars he would make about $1,000.

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