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Forex Trading WHAT IS THE DIFFERENCE BETWEEN OPTIONS AND FUTURES?
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Question by: Henry - 16 Jun 2016, 08:47:00
WHAT IS THE DIFFERENCE BETWEEN OPTIONS AND FUTURES?
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Answer by: Jeremy - 16 Jun 2016, 08:55:15

The futures contract obligates both the parties-buyers and sellers to uphold their contract terms. However, the options provides the right to buy or sell but do not obligate either party. The underlying asset for an option can be any instrument including financial instruments and financial indexes. However, when the underlying asset is a commodity such as grain, oil, precious metals or other agricultural products, then the options are called as commodity options.

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