Difference Between Options and Futures
5paisa Research Team
Last Updated: 07 Apr, 2025 12:51 PM IST

Content
Introduction
Options and Futures are both recognised as financial instruments used by distinguishing investors to profit upon or even hedge against the price alterations of commodities and similar investments. The prime difference between options and futures is that futures need the contract holder to purchase the underlying assets such as commodities or stocks on a respective date in the near future. Option chain, on the other hand, offer the contract holder the choice or option of executing the contract. This difference plays a quintessential role in influencing how futures and options are invested and priced and how traders can benefit from them to gain profits.
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