Free information trading options vs futures
A:The main fundamental difference between options and futures lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the trwding of the contract. Options, on the other hand, give the buyer of the contract the right — but not the obligation — to execute the transaction.Both options and futures contracts are standardized agreements that are traded on an exchange such as the NYSE or NASDAQ or the BSE or NSE.
Options can be exercised at any time before they expire while a futures contract only allows the trading of the underlying asset on the date specified in the contract.There is daily settlement for both options and futures, and trrading margin account with a broker is required to trade options or futures. Investors use these financial instruments to hedge their risk or to speculate (their price can be highly volatile).
Not only do the prices of the latter fluctuate more, but investing in individual stocks means decoupling oneself from the collective wisdom and movements of the market. Und wir arbeiten stetig daran noch mehr Mehrwert anzubieten.