The underlying assets of options can be a variety of asset classes, such as stocks, stock indexes, foreign exchange, commodities, bonds and so on. Among them, stock option is the most common type, and SSE 50ETF option, the first listed stock option in China, is based on 50ETF index fund. Later, 300ETF options, stock index options and commodity options were listed one after another.
Futures is another financial derivative, which is a contract for delivery at an agreed price on a specific date in the future. The underlying assets of futures contracts are usually commodities (such as gold and crude oil) or financial indicators (such as stock indexes and interest rates). Futures trading is conducted in the futures exchange, and it is bought and sold through standardized contracts.
Although futures and options are both financial derivatives, there are some important differences between them. Futures is a kind of transaction in which both parties are obliged to perform the contract, while options are a kind of transaction that gives the holder rights but does not enforce the contract. Futures trading is standardized and centralized, while option trading can be standardized or personalized.