What's the difference between futures and options?
Asked 4 years ago
The stock market has got all sorts of interesting rules with rights and obligations, etc. I'm not sure I really understand the difference between options and futures. How and when would I use a future vs. option?
Andia Rispah Igobwa
Monday, November 01, 2021
A Future is an obligation and a right to buy or sell an underlying stock/assets at a predetermined price and deliverable at a predetermined time.
Options are a right but without an obligation to buy or sell equity or index at a predetermined price or time. You can either have a Call option (right to buy) or a Put Option (right to sell)
Please follow our Community Guidelines
Related Articles
What Are the Different Types of Stock Trading?
Sofia Thai
April 23, 2021
An IQ Option Review: Is It a Safe Trading Platform?
Filip Dimkovski
December 23, 2024
A Detailed Review: Forex and CFD Broker Henyep Capital Markets (HYCM)
Andrew Moran
December 23, 2024
Related Posts
Filip Dimkovski
The Most Important Basic Trading Rules
Filip Dimkovski
Guidelines for Beginner Penny Stock Traders
Filip Dimkovski
Know This About the IronFX Broker
Andrew Moran
How to Know When to Buy, Sell or Hold Stocks
Can't find what you're looking for?