Crude oil option refers to the trading rights of crude oil futures contracts as the subject matter, and investors and futures contract holders agree to trade within a certain period of time. Crude oil options can be divided into two types, namely put crude oil options and call crude oil options. Investors of crude oil options need to pay royalties within a certain period of time before they can obtain the trading rights of crude oil futures contracts. The risk of crude oil option is low and the profit amount will not be too limited.

The difference between options and futures

1. Different trading objects: the trading object of options is a trading right, while the trading object of futures is a futures contract;

2. Different rights and obligations: the buyer of options does not need to bear obligations, but both the buyer and the seller of futures need to bear obligations;

3. Different performance guarantees: the risk borne by the option buyer is the option premium, and the seller also needs to bear the risk of the futures contract, so it is necessary to pay the deposit, and both parties to the futures transaction must pay the deposit;

4. Different profit and loss characteristics: options are nonlinear and futures are linear.