Futures refers to the form of agreeing on the quantity and price of a fixed place at a certain time in the future. Option refers to a right, which means that after a contract is concluded, one party gives the other party the right to buy or sell a certain number of subject matter at the agreed price on the expiration date of the contract.

1 object is different.

The object of futures is standardized contracts; The goal of the option is correct. Through it, the buyer has the right to buy and sell the subject matter of the contract at the agreed price, which is a kind of buying and selling right.

2 asymmetric rights and obligations

Futures are used to hedge the risk of price fluctuation, which is a two-way way. Futures can buy and sell contracts according to regulations before maturity, but the delivery obligation must be fulfilled on the maturity date.

The options are different, and the options are one-way. After paying a certain premium to buy a call option or a put option, the buyer of the option has the obligation to decide whether to unilaterally perform the sales contract. The seller of the option contract sells the contract, which is equivalent to giving the buyer the right to deliver or not.

Three different deposit systems

In the futures market, both parties need to pay 5% to 15% as required, while in the options market, only the seller needs to pay the deposit.

4 Different profit and loss characteristics

The profit and loss of futures are symmetric and linear, and options are asymmetric and nonlinear. Both sides of futures face the possibility of unlimited profit and unlimited loss. In the option market, the profit and loss are different, and the buyer of the option has limited losses (royalties) and unlimited profits; On the other hand, option sellers have limited profits and unlimited losses.

Five different ways of ending

There are two kinds of futures settlement methods, hedging liquidation and physical delivery; Options are divided into hedging, exercise and waiver of rights at maturity.