Spot option is actually an investment tool, which can buy and sell specific securities, commodities, interest rates and so on at a specific time. In fact, the difference between spot options and futures options lies in delivery. In fact, when the spot option is executed when the relevant option contract expires, the deliverable is spot or physical.

Futures option: that is, its delivery is a futures contract.

Forward market: refers to the OTC market where the format of the transaction contract is not fixed (generally, the content of the contract is decided by the buyers and sellers themselves, and in some cases, such contracts are tailored by financial institutions for customers).

Futures market: refers to the floor trading market where trading contracts are fully formatted.

Difference:

(1) Participants are different. Forward is generally professionals and big manufacturers, while futures can participate as long as they pay the deposit as required;

(2) Different trading methods. In the future, the buyer and the seller will directly contact the transaction, and in the future, the two parties will not directly contact each other, and the broker will act as the agent;

(3) The contents of the transaction are different. Forward trading can be performed through negotiation as needed, while futures are standardized contracts, which are easy to transfer and do not require holding maturity;

(4) Different trading places. Forward trading is over-the-counter trading and there is no fixed place, while futures trading is on-market, with fierce competition;

(5) The liquidation of transactions is different. In principle, spot delivery is carried out on the delivery date for forwards, and spot delivery is not carried out for futures. For open contracts, the deposit shall be settled daily.

The spot and forward markets have not been formally formed in China, and futures are formal investments, which are very mature.

The above contents are for reference only and do not make any investment suggestions!