Futures and Options

In securities market derivatives instruments like futures and options helps to derive the value of the underlying asset to trade. Futures contract is agreement of buyer and seller to trade on that particular asset to buy and sell at strike price within the expiry date. whereas the Options gives the buyer contract with no obligation to pay but only premium within expiry date. For Futures trading margin is required, for Options only premium is required to trade. Futures are widely embraced by speculators and Options by Hedgers.