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.
Glossar
Futures Contracts
Mechanism ⎊ Futures contracts, within cryptocurrency and broader financial derivatives, represent standardized agreements obligating parties to transact an asset at a predetermined price on a specified future date; these instruments facilitate price discovery and risk transfer, extending beyond traditional commodities to encompass digital assets and complex financial indices.
Predetermined Price
Benchmark ⎊ This price functions as the fixed reference point, or benchmark, against which the current market price of the crypto asset is measured to determine the option's intrinsic value.