Meaning of derivatives futures and options

Lombard. Nor did they appear to meet a genuine investment need, the Financial Conduct Authority concluded in plans to curb trading in binary bets published in December.

It also proposed limiting the amount of leverage that retail investors could use when trading options and contracts for difference (CFDs) - derivatives that allow investors to gamble on share price movements - fearing the risks were not sufficiently understood. UK-based binary options companies are currently regulated by the Gambling Commission, but the Financial Conduct Authority wants to bring them under its authority.

Taking a gamble Jane (not her real name) is an IT worker who started trading because she wanted to help her three grown-up children buy property.