The connection between futures and options
1. They are all traded in organized places—futures exchanges or options exchanges. Standardized management by the exchange.
2. All on-site transactions adopt standardized contract methods. The exchange shall uniformly set standards for transaction quantity, minimum price change, price limit, trading unit, contract month and other standards.
All three have a unified clearing agency for liquidation, and the clearing agency plays a guarantee role in the liquidation.
Four have leverage.
The difference between options and futures
The connection between futures and options
- They are all conducted in an organized place - a futures exchange or an options exchange trade. Standardized management by the exchange.
2. All on-site transactions adopt standardized contract methods. The exchange shall uniformly set standards for transaction quantity, minimum price change, price limit, trading unit, contract month and other standards.
Three have a unified clearing agency for liquidation, and the clearing agency plays a guarantee role in the liquidation.
Four have leverage.
The difference between options and futures
Futures are different from standardized contracts. The carrier of buying and selling is the underlying asset, and the only variable is the price of the futures contract. The carrier is the futures contract, that is, the price of the futures contract (execution price) is certain. The only variable is the premium
The rights and obligations of the buyer and seller. Both parties have corresponding rights and obligations, and are obliged to close the position or deliver the goods when they expire, and most transactions are the way the seller applies for delivery. Options The buyer has the right to decide whether to enforce the rights or give up the rights, and the seller is only obliged to perform as required.
Performance bond regulations are different. Both parties must pay a deposit. The option seller delivers, and the buyer only pays the premium
The risk and return are different. The risk and return structures of both parties are symmetrical and asymmetric