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What are the similarities and differences between options and futures?
Similarities: They are all financial derivatives with the functions of risk management, asset allocation and price discovery.

Difference: First, the objects of the transaction are different. The object of commodity futures trading is a standardized contract containing a certain number and grade of commodities; The object of commodity options trading is the right to buy and sell a certain subject matter (physical or commodity futures contract). Second, the rights and obligations of buyers and sellers are different. Futures buyers and sellers stipulate equal rights and obligations in the contract; The option buyer has the right to buy and sell commodities (or futures contracts), and the seller undertakes to perform the obligations. Third, the risks and benefits of buyers and sellers are different. Both buyers and sellers of futures are faced with unlimited risks and benefits; The potential profit of the option buyer is uncertain and the loss is limited. The biggest loss is the premium paid for the option, while the income of the option seller is limited. The biggest income is the premium received for selling the option contract, but the potential loss is uncertain. Fourth, the deposit is collected in different ways. Both the buyer and the seller of futures must pay the deposit; Option buyers pay royalties without paying the deposit, while option sellers collect royalties and pay the deposit at the same time. Fifth, trading opportunities are different. Futures are mainly traded according to the price change direction of commodities (or futures contracts); Options can be traded according to the direction of price changes or price fluctuations. Sixth, the hedging effect is different. Futures hedging needs to mark the market day by day, the capital occupation is uncertain, and the favorable market price changes need to be abandoned; Call option hedging can benefit from favorable market price changes only by paying a premium and locking in the highest cost. Seventh, the types of contracts are different. Futures have only one futures contract in different months, and investors can buy or sell this month's futures contract; Options can have many call option contracts and put option contracts with different execution prices and the same maturity date within one month. Investors can buy and sell call option contracts or put option contracts. Eighth, the delivery methods are different. Commodities or assets traded in futures must be delivered at maturity, unless the futures contract is sold before maturity; In option trading, goods (or futures contracts) can be delivered by exercising from the specified exercise date to the expiration date, or the option contract can be invalidated by exercising.