Futures and Options
Most people who are a novice to the stock market wonder about what exactly futures and options are, and I bet there is a lot of information on the internet to explain these in detail, here below some useful information to have a quick understanding.
“Futures” in the stock market means you speculate on the price of the stock at a future date and buy or sell accordingly the futures contract.
“Option” is a right to buy or sell a stock on a specific date.
The difference between futures and options is, Futures holders are required to take ownership of the asset, and the Options contract holder has an obligation but not mandatory to buy the asset.
Futures are less volatile and options are more volatile.