Basics of Futures and Options

Option Contract – is one where buyer alone gets rights. If it is Call option the buyer gets the right to buy and if it is Put option the buyer gets rights to sell. Seller gets a premium for signing the contract

Future – is one where both buyer and seller have rights (buyer has buying rights and seller has selling rights) and both pay a minimum amount while signing the contract. The settlement should happen even if one of the parties approach the exchange