Futures vs Options: Key Differences

Understand the structural differences between futures and options before studying strategies.

Futures and options are both derivatives, but their obligations and payoff structures differ. A futures contract creates an obligation under the contract terms, while an option gives the buyer a right with a premium paid for that right.

Margin, leverage, expiry, mark-to-market mechanics and payoff asymmetry are important topics for learners.

NSE currently offers futures and options on major indices and eligible securities. Students should study current contract specifications from official exchange sources before using examples.