Futures and options are common derivatives in financial markets, which are used to manage risks, speculation and arbitrage. Although they are all derivatives, there are some key differences.

Futures is a standardized contract that promises to buy or sell certain basic assets (such as commodities, stocks, currencies, etc.). ) at a specific price on a specific date in the future. Both the buyer and the seller of a futures contract are obliged to deliver the goods when the contract expires. The futures exchange is a trading place for futures contracts, providing services such as standardized contracts, transaction settlement and supervision. The purpose of futures trading is usually to hedge risks or speculation.

Option is the right to buy or sell the underlying assets, not the obligation. The option contract gives the holder the right to buy (call option) or sell (put option) the underlying assets at a specific price on a specific date in the future. The buyer of the option contract pays a certain fee (option fee), and the seller collects this fee. Option trading is usually used for speculation, hedging or portfolio strategy.

The main difference between futures and options is the difference in rights and obligations. Both the buyer and the seller of a futures contract are obliged to perform the delivery when the contract expires, while the buyer of an option contract has the right to choose whether to perform the contract. In addition, futures contracts are standardized, exchanges provide standard contracts, and option contracts can be customized according to demand.