What is the difference between futures and options?
Derivatives
A futures contract obligates both parties to buy/sell at a set price on expiry; an options contract gives the buyer the right, but not the obligation, to do so.
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This difference in obligation changes the risk profile significantly — a futures buyer or seller must honor the contract regardless of price movement, while an options buyer can let the contract expire worthless, losing only the premium. Options sellers, however, carry an obligation if exercised.
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