Options and futures are known to investors, who will analyze the relevant contents as long as they enter the market. Because these knowledge points are unclear, investors will lose money when they enter the market. In the financial market, options, stocks and futures are always compared.

What's the difference between stock options and futures contracts?

1 Different buying and selling obligations: the buyer of the option has rights but no obligations, and the seller only has obligations but no rights. After the futures contract expires, the holder must buy or sell the subject matter at the price agreed in the contract.

2 Different margin provisions: In stock option trading, only the option seller needs to pay the margin, and the margin is generally charged in a nonlinear proportion. In futures trading, both buyers and sellers need to pay a certain margin as a guarantee, and the margin is charged in a linear proportion.

3 Different income risks: the option buyer bears limited risks, but the income may be infinite, and the option seller enjoys limited income, but the risk he bears may be infinite. The profit and loss risks borne by the buyers and sellers of futures contracts are relatively symmetrical.

4 Different yield curves: the profit and loss characteristics of options are nonlinear, so we need to pay attention to both the rising and falling direction and the expiration price. The profit and loss characteristics of futures are linear, and the main direction of trading is ups and downs, so the yield curve of option trading cannot be copied.

The trade-off between hedging and profit is different: investors use stock options to hedge, and when it is determined that there is management risk, they still reserve space for further profit. When futures contracts are hedged, they give up possible economic benefits while avoiding risks.

Although there are the above differences between individual stock options and futures contracts, options and futures, as standardized products of exchange transactions, can both be the means for investors to realize risk management. In addition, investors need to understand that the trading object of options is the option to buy or sell the underlying assets at the agreed time and price, while the trading object of stocks is individual stocks.

Investors need to understand that the option contract has a specific expiration date and the contract expires. For stocks, as long as they are not delisted, investors can hold shares of listed companies indefinitely.