Futures refer to a forward "goods" contract.

Concluding such a contract is actually a promise to buy or sell a certain amount of "goods" on a certain day in the future.

Of course, such "goods" can be physical commodities such as soybeans and copper, or financial products such as stock indexes and foreign exchange.

Option is an option, which refers to the right to buy or sell a certain amount of a specific commodity at a specific price at a specific time in the future.

Simply put, for the buyer, it is a "right" that can choose to execute or not in the future.

The option seller only has the obligations specified in the option contract.

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Options and futures are both standardized contracts, with the following main differences between them: (1) The rights and obligations of buyers and sellers are different.

Options are one-way contracts, and the rights and obligations of the buyer and seller are not equal.

The buyer has the right to buy or sell the underlying asset at the price specified in the contract, while the seller passively performs its obligations.

Futures contracts are two-way, and both parties must bear the obligation to deliver when the futures contract expires.

(2) Performance guarantees are different.

In options trading, the buyer's maximum loss is the premium paid, so there is no need to pay a performance bond.

The seller faces greater risks and may suffer unlimited losses, so he must pay a deposit as a guarantee to fulfill his obligations.

In futures trading, both buyers and sellers of futures contracts must pay a certain percentage of margin.

(3) The calculation method of margin is different.

Since options are non-linear products, margin adjustments are not proportional.

For futures contracts, since they are linear, margin is charged proportionally.

(4) Clearing and delivery methods are different.

When an option contract is held until the exercise date, the option buyer can choose to exercise or give up the right, while the option seller can only exercise the option.

On the expiration date of a futures contract, the underlying asset is automatically delivered.

(5) The contract values ??are different.

The option contract itself has value, which is the premium.

The futures contract itself has no value and only tracks the underlying price.

(6) The profit and loss characteristics are different.

The profit of the buyer of an option contract fluctuates with changes in market prices, but its maximum loss is only the premium for purchasing the option.

The seller's profit is only the premium from selling the option, and the loss is not fixed.

In futures trading, both buyers and sellers face unlimited profits and losses.