How option contract differ from future contract?

[Prakash]

In option contract buyer has right to buy from seller with no obligation by giving premium

In future contract buyer has right to buy and seller has to right to sell with obligation by giving caution deposit amount to exchange

[Loyd Dsouza]

in future contract both buyer and seller has equal rights. buyer has obligations.

in option contract only buyer has the rights.buyer doesn’t have any obligations.

[Rajarathinam]

Option contract differ from future contract by means there is no obligation from the buyer/seller to execute the trade

[sivaranjani]

The future contract provides rights to buyer(Rights to Buy) and Seller(Rights to Sell) at the agreed price. Margin needs to be paid by both buyer and seller.

But in option contract only the buyer gets the rights and also do not have any obligations. Seller of the contract do not have any rights but will get premium for signing the contract.

[Geena]

Option and futures lies in the obligation .An option gives the buyer the rights, but not the obligation to buy / sell

[Author]

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