In the option market, it is very important for investors to choose contracts. In the futures market, the choice of contract is relatively less important. In futures, it is very necessary to raise the target price.
First of all, the income methods of the two are different.
There are two ways for investors to make money in option investment. Investors trade option contracts to earn the price difference, and investors hold the contracts until the exercise date to earn the price difference by exercising the underlying assets.
In the futures market, investors can only get the difference by closing positions or trading.
Secondly, the advantages and disadvantages of the two are compared:
The investment risk and return of option trading are different. In option investment, the buyer's investment cost is not high, but its rate of return is high, and the seller's income is not high, but its risk is high. Therefore, for investors with relatively little capital and investment, it is best to choose buyers as investors.
In futures trading, the risks of two investors are the same.
Futures contracts are two-way contracts, and both parties are obliged to deliver futures contracts on time. If you are unwilling to actually deliver, you must hedge within the validity period. The option is a one-way contract, and the buyer of the option has the right to perform or not to perform the option sale contract after paying the option premium, and does not have to bear the obligation.
Third, the types of contracts between them are different.
There are many kinds of option contracts in the option market, such as put, call, peace value and so on. With the new contract, there will be differences in exercise time, basic assets and volatility.
In the futures market, option contracts usually differ only in the trading month.
Fourth, the rights between the two are different.
In option investment, on the exercise date, the option buyer can choose, exercise or give up the exercise. The option seller can only cooperate with the seller's choice.
In futures and investment, both parties can only trade at maturity, and there is no choice not to trade.
The target of futures trading is standard futures contract; The theme of option trading is the right to buy and sell. Within the agreed time limit, you can exercise the right to buy or sell the underlying assets, or you can give up exercising the right; When the buyer chooses to exercise his rights, the seller must perform the contract.