What is the difference between futures and options?

Answer by  mannersandsuch (1796)

Futures men that you are guessing what the prices are right now and paying that, options mean that you pay to have the option of investing in the stock later. Its actually a little more complex then this because the regulations that are in places but this is the basic idea.

Answer by  chrisshah (172)

A future is an obligation to buy a specific financial security (called the underlying) at a future date for a set price. An option gives the buyer the right, but not an obligation to buy the underlying for a set price. The difference is that a future is an obligation, while the option is just a right.

Answer by  LippoTheHippo (67)

An option is the right, but not the obligation, to buy or sell an asset at a fixed price on a futures date. A future is an obligation to buy or sell an asset at a specified price and future date.