Futures and options aren't for the faint of heart. These are sophisticated investments that shouldn't be undertaken casually. Investors whose experience is limited to less volatile, less leveraged and less risky vehicles like stocks or bonds should be aware that options and futures markets require a much stronger stomach for risk.

Even sophisticated individual investors should not approach them without the counsel of qualified advisors -- that is, fee-only financial planners who don't earn commissions for the sale of these investments. (To get to the Money 101 lesson on hiring financial help, click here.) In addition, in order to understand the myriad factors affecting the prices of options and futures, these investors should undertake their own extensive study of these markets, and of the individual stocks or commodities that they are thinking of trading.

If, after taking these steps, you decide that options and futures aren't for you, you won't be in the minority. Shying away from highly leveraged instruments is no less shameful than backing up from the edge of the Grand Canyon: The view's not as good, but the risk is reduced.

Yet, if you've got a strong stomach for risk, options can provide a helpful hedge to protect yourself from dips in stocks or indexes you already own, while futures, in small amounts, can offer an alternative form of portfolio diversification. In the sections that follow, we'll show you the best ways to use them.

For a quick overview, click on "Top 10 things to know" at the upper left. Or work your way through "The details" sections on the left for more information on the topics in this lesson (calculators and other interactive features are marked with a symbol). The "Glossary" section provides an online dictionary of important terms. And "Take the test" is a quiz that checks what you've learned and offers suggestions for further study.