1, the underlying assets are different.

All financial instruments that can be used for futures trading can be used for option trading. Financial instruments that can be used for option trading shall not be used for futures trading. Only financial futures options, no financial options futures. Generally speaking, the underlying assets of financial options are more than financial futures.

2. The symmetry of rights and obligations of traders is different.

The rights and obligations of both parties in financial futures trading are symmetrical. There is obvious asymmetry between the rights and obligations of both parties in financial option trading. For the buyer of the option, there are only rights but no obligations, and for the seller of the option, there are only obligations but no rights.

3. The performance guarantee is different.

Both sides of financial futures trading need to open a margin account and pay the performance bond as required. In the transaction of financial options, only the option seller, especially the seller of unsecured options, needs to open a margin account and pay the margin according to the regulations, because it has the obligation and no right. As an option, the buyer has only rights but no obligations. It doesn't need to pay a deposit, and its loss is the option fee at most, which it has already paid.

4. Different cash flows.

There is no cash receipt and payment relationship between the two sides of financial futures trading, but after trading, due to the daily settlement system, cash flow will occur between the two sides due to price changes. In the financial option transaction, in order to obtain the rights granted by option contracts, the option buyer must pay a certain option fee to the option seller, but after the transaction is completed, there will be no cash flow between the two parties except the due performance.

5. The profit and loss characteristics are different.

Neither party to the financial futures trading has the right to breach the contract, nor has it the right to demand early delivery or late delivery, but can only hedge or make physical delivery at any time before the expiration. The degree of its profit or loss depends on the range of price changes. Therefore, the potential gains and losses of buyers and sellers in financial futures trading are infinite. In the transaction of financial options, the rights and obligations of options buyers and sellers are asymmetric. The loss of the financial option buyer is limited to the option fee he pays, but the profit he may get is unlimited. On the contrary, the seller of options gains a limited profit in the transaction, which is limited to the option fee he collects, while the loss is infinite.

6. The function and effect of hedging are different.

Using financial options to hedge, if the price changes adversely, the hedger can avoid losses by exercising options; If the price changes favorably, the hedger can protect the interest by giving up the option. Using financial futures to hedge, while avoiding the losses caused by unfavorable price changes, we must also give up the benefits that may be obtained from favorable price changes.

It is not that financial options are more favorable than financial futures. For example, from the perspective of hedging, financial futures are usually more effective and cheaper than financial options, and it is not easy to really hedge and make profits in financial options trading.

Therefore, financial options and financial futures have their own advantages and disadvantages. In real trading activities, people often combine the two to achieve specific goals through a certain combination or collocation.