1. Definition: Option is a right rather than an obligation, which gives the holder the right to buy or sell a specific asset at a specific price at a specific time in the future. Futures is a standardized contract, which stipulates the obligations of buyers and sellers to buy and sell specific assets at a specific price at a specific time in the future.
2. Rights and obligations: the holder of the option has the right but no obligation to buy and sell specific assets at an agreed price at a certain time in the future; Both buyers and sellers of futures are obliged to deliver specific assets at an agreed price at some time in the future.
3. Trading time: options have a long trading time and can be traded at any time before the expiration date; Futures trading time is short, usually one delivery month.
4. Risk: The risk of options is limited to the option fee, that is, the investment is limited; The risk of futures is more obvious, because futures are more leveraged and investors may lose more.
5. Profit model: The profit model of the option can be bullish or bearish, because the holder of the option has the right to buy or sell specific assets at the agreed price; The profit model of futures can only be bullish or bearish, because buyers and sellers of futures must buy and sell specific assets at agreed prices.
Options and futures are two different types of financial derivatives, and their trading mechanism, nature and risks are different. Investors should choose their own trading methods according to their own needs and risk tolerance.