A futures contract is a contract between two parties where both parties agree to buy and sell a particular asset of specific quantity and at a predetermined price, at a specified date in future. In option contract the buyer of the call/put option has the right to buy/sell but do not have any obligation however the seller has to buy/sell if the buyer exercise the contract, where as in Future contracts both the buyer and seller has the rights and obligation to buy/sell the underlying asset.
Teresa David, , Futures and Options, Call option, Cash Market, Derivative instruments, expiry date, future contract, lot size, Margin, MTM, Options Contract, premium, Put Option, spot market, strike price