For example:

It's summer. Futures means that you agreed with the farmer's uncle to buy his 1 00 kg rice in autumn at the price of 3 yuan1kg! At that time, you must buy and he must sell, regardless of the market price.

Option, his literal consciousness is the right of the future. There are two kinds of options, one is a call option and the other is a put option.

For example:

Someone reached an agreement with a financial institution: someone gave the financial institution a certain option fee, and then he had the right to buy a barrel of crude oil at the price of 100 dollars three months later.

Suppose the original price of oil is $80 a barrel now, and if it rises to $200 in three months, I will take the option to find a financial institution, buy a barrel at 100, and then sell it at the market price of $200, so I can earn 100.

If the crude oil falls below 100, he will lose money if he continues to exercise this right, so he can not buy it, and the loss is the option fee paid in advance.

Of course, you can also sum up, which one loses more, exercise or giving up exercise, and the two evils are the lesser. That is, as long as you are bullish, you can make money, so it is called a call option.

Extended data:

The difference between futures and options:

1, with different performance guarantees.

Both buyers and sellers of futures contracts must pay a certain amount of performance bond; In option trading, the buyer does not need to pay the performance bond, but only requires the seller to pay the performance bond, which shows that he has the corresponding financial resources to perform the option contracts.

2. Different themes

The subject matter of futures trading is commodities or futures contracts, and the subject matter of option trading is the right to buy and sell options of commodities or futures contracts.

3. The symmetry of investors' rights and obligations is different.

The option is a one-way contract, and the buyer of the option can perform or not perform option contracts's rights after paying the insurance premium, without having to bear the obligation;

Futures contracts are two-way contracts, and both parties to the transaction have the obligation to deliver futures contracts at maturity. If you are unwilling to actually deliver, you must hedge within the validity period.

Reference source: Baidu Encyclopedia-Futures

Reference source: Baidu Encyclopedia-Options