Difference between option and future trading ?

Findoc Financial services Group
1 min readOct 6, 2020


Derivatives are financial instruments which derive their value from underlying assets such as equity shares, commodities , currencies , and interest rates.

Futures and options are the two most commonly traded derivatives. Market volatility also plays a significant role in the trading of futures and options.It is imperative to understand the difference between options and futures to enable a better understanding of the derivatives. Here we mention below the major differences.

·- A binding agreement between two parties to buy or sell an asset at a certain time in the future at a pre-determined price is a future contract .

· -A non-binding contract in which an investor gets the option or right to buy or sell a financial instrument on or before a certain date in the future at a pre-determined price is an option.

· — In the case of options, an investor needs to pay the premium amount before they enter into the contract.

Originally published at https://www.myfindoc.com.



How Earnings Announcements Affect Option Prices

4 min read

Aug 7, 2020

Think Like a Market Maker — Understanding Implied Volatility

14 min read

Jan 8, 2021

Findoc Financial services Group

Findoc Group looks after client’s financial resources, diagnosing ailments if any, prescribe them with right and adequate medicine.

Recommended from Medium


See more recommendations