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<p>[QUOTE=&quot;taurus876, post: 774061, member: 5583&quot;]You purchase the right to buy a set amount of gold at a set price in the future.</p><p><br /></p><p>If gold is lower than that set price, you wasted your money.</p><p><br /></p><p>If gold is higher that that set price, you buy the gold and sell it and make a profit.</p><p><br /></p><p>Basically you are betting the price of gold will rise above the set price. The seller is betting that gold will fall or not reach the agreed upon price.[/QUOTE]</p><p><br /></p>

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