First, the transaction objects are different. The trading object of stocks is individual stocks, while the trading object of options is option contracts, that is, the right to buy or sell the underlying assets at the agreed time and price.

Second, the trading methods are different. Generally, the stock is traded in cash, and the option is paid by the option buyer, and the option seller pays the deposit to get a premium.

Third, the investment period is different. As long as the listed company does not withdraw from the market, investors can hold the company's shares for a long time, and the option contract has a specific expiration date, which will expire.

Fourth, the yield curve is different. Stock returns are linear, mainly from stock price changes and dividends, that is, how much you earn when you go up and how much you lose when you go down. Generally speaking, stocks can only earn rising returns. Option returns are nonlinear. Through the combination of subscription, put and buyer and seller, options have corresponding strategies in various markets such as rising, falling and sideways.

2. What's the difference between options and futures?

First, the rights and obligations of buyers and sellers are different. Both parties to a futures contract have equal rights and obligations. When the contract expires, both parties must buy and sell the subject matter at the agreed price (or make cash settlement). The option contract is asymmetric, and the option buyer has rights but no obligations; The option seller has obligations but no rights (if the option buyer chooses to exercise, the option seller must fulfill its obligations).

Second, the margin requirements are different. 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. In option trading, only the option seller needs to pay the deposit, and the deposit is generally collected in a nonlinear proportion.

Third, the characteristics of risks and benefits are different. The profits and risks of both parties to a futures contract transaction are symmetrical, and both profits and losses change with the changes of the underlying price and other factors. However, the benefits and risks of both parties to the option transaction are asymmetric, and the possible profits of the option buyer change with the changes of the underlying price and other factors, and the possible losses are limited (with the premium paid as the upper limit). The profit that the option seller may get is limited (with the royalty as the upper limit), and the loss that the option seller may bear varies with the target price and other factors.

Fourth, the yield curve is different. The profit and loss characteristics of futures are linear, and the main trading directions are rising and falling directions. The profit and loss characteristics of options are nonlinear, so it is necessary to pay attention to the rise and fall of the underlying price, the change of volatility and the remaining maturity time at the same time. Through the combination of different types of contracts, a more diversified and three-dimensional income curve can be realized.

Fifth, the risk management functions are different. When holding the target, futures and options can avoid the price risk of some targets by offsetting the current profit and loss. The difference between the risk management functions of futures and options is that when the underlying price changes in a favorable direction, futures give up the opportunity for the underlying to obtain further profits, while options retain the possibility for the underlying to obtain further profits.

The profit and loss chart of futures and options is as follows:

3. What's the difference between options and warrants?

There are obvious differences between options and warrants.

First, the issuer is different. Warrants are usually issued by third parties, such as listed companies, investment banks or major shareholders of the underlying securities. Option has no issuer, and both parties are investors.

Second, the contract features are different. Some elements corresponding to the warrant contract are decided by the issuer. Option contract is a standardized contract, and its exercise price, target and expiration date are uniformly stipulated by the exchange.

Third, the contract supply is different. The supply of warrants is limited, which is determined by the issuer and limited by the issuer's will, financial strength and the number of underlying securities circulating in the market. Theoretically, the supply of options is infinite.

Fourth, the performance guarantee is different. The warrant seller, that is, the warrant issuer, guarantees the performance with its assets or credit, while the option seller needs to pay a deposit to ensure its performance.