- Future contract is a binding agreement for buying and selling of a financial instrument at a predetermined price at a future specified date.
- Require higher margin than options.
- The Date is specified in the contract.
- Options are the contract in which the investor gets the right to buy or sell the financial instrument at a sell price, on or before a certain date, however the investor is not obligated to do so.
- Require Lower Margin than Futures.
- Can be purchased anytime before the expiry date specified in the contract.