How option contract differ from future contract?

[Christopher]

In the option contracts the buyer has no obligation to buy or sell. His risk is only limited up to his premium paid.

In future contract the both the seller and buyer must keep their words and honor the contract.

 

[Navin]

Future :

The future contract will give the buyers to have the right to buy and the sellers to have the right to sell at the agreed amount of price at the end of the contract.

Options:

Whereas in options, the buyers will only have the rights- the rights to buy or the rights to sell. they do not have any obligations only the sellers will have the obligations and they do not have the rights.

[gorantla.vinod]

Option contract gives right to buy or sell to the buyer of the option. no obligation to buy or sell by the buyer

Future contract gives the right as well as obligation to fulfill the contract at the end of the contract. daily settlement takes place

[v geetha]

In Future contract, the transaction specified by the contract must take place on the date specified.

In Options, it gives the buyer of the contract the right but not the obligation, to execute the transaction. This can be exercised at any time before they expire.

[vetrivel]

Future contract is both of buyer and seller equal right the contract.

Option contract is only for the buyer right to the contract.

[Author]

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