1. Different rights and obligations: in option trading, the option buyer has the right but not the obligation to buy and sell the underlying assets at the agreed price within the agreed period, while the option seller has the obligation but not the right to buy and sell the underlying assets at the agreed price. In futures trading, both buyers and sellers are obliged to deliver the underlying assets at the agreed price within the agreed time limit.
2. The characteristics of risks and returns are different: in futures trading, risks and returns change linearly with the price of the underlying assets, and both risks and returns may be great. In option trading, the relationship between risk and return is not linear. The risks and benefits of buying options are limited, while the risks of selling options are unlimited.
3. Different leverage: the leverage of option trading is greater than that of futures trading. Because the option buyer only needs to pay a certain royalty to control the underlying assets with greater value, while the futures trading needs to pay a certain margin. Therefore, relatively speaking, the income of option trading may be higher, but the risk is also greater.
4. Different trading restrictions: futures trading is generally not limited by time and can be traded at any time, while option trading has a specific expiration date and can only be traded before the expiration.
5. The market depth and liquidity are different: the futures market is relatively large, the market depth and liquidity are high, the option market is relatively small, and the market depth and liquidity are relatively weak.
To sum up, there are significant differences between futures and options trading, and investors need to choose trading tools according to their investment needs and risk tolerance. It is recommended to invest under the guidance of professional institutions or investment consultants.