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What's the difference between options and futures?
The difference between options and futures

1, the subject matter is different: the subject matter of option is a right, and futures is a standard contract;

2. Investors have different rights and obligations: options are one-way contracts and futures are two-way contracts.

3. the guarantee of performance is different: in futures trading, the margin needs to be paid by the buyer and the seller, but not by the buyer in options. 4. Different profit characteristics: futures are linear and options are nonlinear.

5. Different effects: futures can be hedged and options are limited.

Introduction to options

Option refers to a contract of rights. When investors hold options, they can buy or sell an asset at a relatively fixed price for a specific period of time. An option contract must involve two people, the buyer and the seller. The subject matter of option is a kind of right assets, including stocks, bonds and stock indexes. According to whether the option can only be exercised on the expiration date, the option can be divided into European option and American option. After the option expires, buy or sell assets according to the option contract.

Introduction to futures

Futures is a kind of wealth management product, which refers to the transaction of standardized forward contracts for investors to buy and sell goods or financial assets in fixed trading places. According to the transaction contract, the buyer will buy or sell a certain amount of goods or financial assets at a specified price at some time in the future. The types of futures mainly include commodity futures and financial futures, and the main trading varieties of commodity futures are physical objects, such as cotton, soybeans and oil. The main trading products of financial futures are virtual assets, such as stocks and bonds.