How Does the Lack of Obligation Differ from a Futures Contract?
In a futures contract, both the buyer and seller have an obligation to transact the underlying asset at the agreed-upon price on the expiration date. Options, conversely, grant a right to the buyer and an obligation only to the seller, providing asymmetric risk.
Glossar
Obligation to Transact
Meaning ⎊ Obligation to Transact is a binding contractual requirement placed upon one or both parties in a financial derivative agreement, compelling them to execute the purchase or sale of the underlying asset at a specified price upon the contract's maturity or exercise.
Obligation
Commitment ⎊ Obligation within cryptocurrency, options, and derivatives contexts represents a legally binding or economically incentivized requirement to fulfill a predetermined action or transfer of value.