First, the subject matter is different: the subject matter of futures trading is a standard futures contract; The subject matter of option trading is a right to buy and sell.
Second, the rights and obligations of investors are different: the option is a one-way contract, and the buyer of the option has the right to perform or not to perform the option contract after paying the option premium, without having to bear personal obligations; Futures contracts are two-way transactions, and both parties have the obligation to deliver futures contracts at maturity. If you are unwilling to actually deliver, you must hedge within the validity period.
Third, the performance bond is different: in option trading, the biggest risk of the buyer is limited to the paid royalties, so there is no need to pay the performance bond. The seller faces greater risks and must pay a deposit as a performance guarantee. In futures trading, both buyers and sellers of futures contracts have to pay a certain percentage of margin.
Fourth, the profit and loss characteristics are different: option trading is a nonlinear profit and loss state, and the buyer's income changes with the change of market price, and its maximum loss is limited to the premium of purchasing options; The seller's biggest gain (that is, the buyer's biggest loss) is royalties; Futures trading is a linear profit and loss state, and both parties are faced with unauthorized profit and loss.
5. Different functions and functions: the hedging of futures is not the hedging of futures, but the hedging of the target (spot) of futures contracts. Options can also be hedged. For the buyer, even if he gives up the performance, he will only lose royalties to preserve his purchase funds. For the seller, either the goods are sold at the original price or the royalties are kept.