Investors Club Q&A

"What's 'futures' and 'options'?"

What's the difference between 'futures' and 'options'?

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  • Futures
  • Options
  • Exchange traded
  • Trade-of-exchange

 User  Tamaryn asked at 16 Nov. 2012


1 answer

 User MarkRisko answered to question to 15 Dec. 2014
Hi Tamaryn,

The difference is mainly what condition they each put on the buyer/seller.

For an option, you have the right to buy or sell at the level, however it does not mean you have to.

For a future, you are obliged to buy or sell at the level agreed, which means that you can not dismiss the contract.

Mark Riskowitz

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