Future and Option – Basics

Future and Option is a very powerful instrument provides trader an opportunity to choose the right instruments to trade to maximize the profits.
A deal is made for a future date (contract) settlement is called as Future contract. Both buyer and seller has pay margin to get into the deal and gets rights/ obligation to exercise at the end of contract expiry date.
In Options market – The Buyer gets rights and no obligation for which a premium is paid to option writer who is obligated.