At present, the stock options available to individuals are limited to SSE 50ETF options and need to be handled at the counter. All over-the-counter options are not open to individuals, so all apps that offer stock options are fake, should be gambling, or simply liars.

What's the difference between futures and options contracts?

Futures is a contract in which the holder has the right to buy or sell assets at a specific price on a specific date in the future. Options give the right to buy or sell a specific asset at a specific price on a specific date, but there is no obligation. This is the main difference between futures and options.

Futures Options-Key Points to Remember

1, contract details:

When drafting futures or option contracts, four key details will be mentioned:

Assets available for trading.

Number of assets available for trading.

Transaction price.

The date when (a futures contract) or (an option contract) must be traded.

Futures contracts will also mention the settlement method.

2. Trading place:

Futures trading is conducted in the stock exchange. Option trading is conducted inside and outside the exchange.

3. Types of assets covered:

Futures and options contracts can cover stocks, bonds, commodities and even currencies.

4. Requirements:

You need a margin account to trade futures and options.

Option futures option type

As far as futures contracts are concerned, there is only one kind. However, in terms of option contracts, there are more choices. There are two types:

Call option: This gives you the right to buy assets at a specific price on a fixed date.

Put option: This gives you the right to sell assets at a fixed price at a future date.

Call options and put options are used in different situations. When the price is expected to rise, call options are preferred. When the price is expected to fall, put options are usually chosen.

Knowledge expansion

Futures and options are derivatives, and their value comes from the value of the underlying assets. There are many kinds of assets that can use derivatives, such as stocks, indexes, currencies, gold, silver, wheat, cotton, oil and so on. In short, any financial instrument or commodity that can be sold or purchased can have derivatives.

Futures and options have two purposes-hedging and speculation. Prices may fluctuate, which may bring losses to producers, traders and investors.

Therefore, these derivatives can come in handy to hedge against such fluctuations. Speculators use derivatives to profit from price changes. If they can accurately predict the price trend, they can make money from such derivatives.