What Is the Difference between Futures and Options Contracts?
A futures contract is a legally binding obligation to buy or sell an asset at a predetermined price on a specified future date. An options contract, conversely, gives the holder the right, but not the obligation, to buy (call) or sell (put) an asset at a set price before or on a specific date.
Futures require margin from both sides, while options buyers pay a premium and have limited loss.
