Derivatives difference between future and options

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Futures and options are both derivatives, but futures obligate the buyer to purchase or sell an asset, while options give the buyer the right to buy or sell.

Futures are contracts that obligate the buyer to purchase or sell an asset at a specific price and date in the future.
Options give the buyer the right, but not the obligation, to buy or sell an asset at a specific price and date in the future.
Futures are standardized contracts traded on exchanges, while options are more flexible and can be customized.
Futures require margin payments, while options do not.
Examples of futures include commodities like oil and gold, while examples of options include stock options and currency options.

Derivatives difference between future and options

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