This book is an effort to fulfill the need of students, scholars and professionals in getting appropriate insight into this complex subject. The book gives an in-depth explanation of the concepts, strategies and considerations involved in derivatives and options trading. This book includes six different chapters on various topics of derivatives and options trading. The first two chapters provide an introduction to derivatives securities and the basics of futures and forward contracts. Third chapter describes basics of options contracts and its terminology, types of options etc. In chapter four, it describes how to trade in options contracts, it also discuss do’s and don’t’s in options trading. Chapter five and chapter six includes detailed discussion about the detail of options trading and different options strategies to hedge in the market, like butterfly, straddle, strangle, condor etc. There are many excellence books on derivatives and it has its own strength. I decided to put detail about only options trading and its different strategies of it.