First, the rights and obligations of buyers and sellers are different.

The risks and benefits of futures trading are symmetrical. Both parties to a futures contract are endowed with corresponding rights and obligations. If we want to avoid the obligation of futures contract due, we must hedge before the contract delivery date, and the rights and obligations of both parties can only be exercised when the delivery date comes.

However, the risks and benefits of option trading are asymmetric. An option contract gives the buyer the right to buy or sell within the validity of the contract. That is to say, when the buyer thinks that the market price is favorable to him, he exercises the right to ask the seller to perform the contract. When the buyer thinks that the market price is unfavorable to him, he can give up his rights without consulting with the option seller, and his loss is only a small royalty paid in advance for purchasing the option. It can be seen that the option contract is not mandatory for the buyer, and the buyer has the right of execution and waiver; But for option sellers, this is mandatory. In American option, the buyer of the option can demand to perform the option contract on any trading day within the validity period of the option contract, while in European option trading, the buyer can only demand to perform the option contract when the performance date of the option contract comes.

Second, the transaction content is different.

In terms of transaction content, futures trading is a standardized contract to pay a certain number and grade of physical objects in the future, while option trading is a right, that is, the right to buy and sell a certain subject matter at a fixed price in a certain period of time in the future.

Third, the delivery price is different.

The futures price for due delivery is formed by bidding, which comes from the expectation of all participants in the market for the maturity price of the contract subject matter, and the focus of all parties in the transaction is on this expected price; The price of the due delivery option shall be determined according to the regulations when the option contract is launched for listing. This is a contract constant that is not easy to change. The only variable of standardized contract is option premium, and the focus of both parties is on this premium.

Fourth, the provisions of the deposit are different.

In futures trading, both buyers and sellers must pay a certain performance bond; In option trading, the buyer does not need to pay the deposit, because his biggest risk is the premium, so he only needs to pay the premium, but the seller must pay the deposit and add the deposit if necessary.

5. Different price risks

In futures trading, the price risk borne by both parties is infinite. In option trading, the loss of the option buyer is limited, the loss will not exceed the premium, and the profit may be unlimited-in the case of buying call options; It may also be limited-in the case of buying put options. The loss of the option seller may be infinite-in the case of selling call options; It may also be limited-in the case of selling put options; And the profit is limited-only the premium paid by the option buyer.

6. Different profit opportunities

In futures trading, hedging means that the hedger gives up the opportunity to make profits when the market price is favorable to him, while speculative trading means that he can get huge profits or suffer heavy losses. However, in option trading, because the buyer of options can exercise his right to buy or sell futures contracts, he can also give up this right. Therefore, for the buyer, the profit opportunity of option trading is relatively large. If option trading is combined with hedging trading and speculative trading, it will undoubtedly increase profit opportunities.

7. Different delivery methods

Commodities or assets traded in futures must be delivered at maturity, unless the futures contract is sold before maturity; Option trading cannot be delivered on the maturity date, which makes the option contract invalid when it expires.

Eight, the delivery price of the subject matter is different.

In futures contracts, the delivery price of the subject matter (that is, the futures price) will change at any time due to the uncertainty of the power of the supply and demand sides in the market. In the option contract, the final price of the subject matter is determined by the exchange and the trader chooses.

Nine, the number of different types of contracts

The futures price is determined by the market, and there can only be one futures price at any time, so when creating a contract type, only the delivery month is changed; Although the final price of options is determined by the exchange, at any time, there may be many contracts with different final prices, and with the different delivery months, options contracts that are several times that of futures contracts can be produced.