Options and futures, as the two most important on-market derivatives, play an important role in helping investors spread risks and improve returns. However, there are great differences in essential attributes and practical applications, and their influence on investment effect is also different.

1, differences in product attributes

On the surface, both trading options and futures can buy or sell the underlying assets at some time in the future. However, their essential attributes are quite different. Option contract is the embodiment of the buyer's right to buy and sell the underlying assets at the agreed price on the maturity date, while futures is a trading method of paying first and then delivering.

2, the difference between the rights and obligations of buyers and sellers

In the spot market, both buyers and sellers have equal rights and obligations stipulated in the contract, whether trading stocks or commodities. The seller needs to deliver the goods as agreed, and the buyer must pay the consideration.

3. Differences in trading methods

In the option market, there are not only differences in different months, but also differences in exercise price, call option and put option. Moreover, with the fluctuation of the underlying asset price, there may be new option contracts with exercise price, so the number of option contracts is relatively large. Futures contracts only distinguish delivery months, so the number of futures contracts is relatively fixed and limited.

4. Difference of hedging effect

If futures are used for hedging, investors can sell futures contracts when they hold spot long positions or buy futures contracts when they hold spot short positions.

If options are used for hedging, investors can buy put options while holding spot long positions, or buy call options while holding spot short positions.