Difference Between Future & Options

Can anyone tell me the exact difference between Future & Options?

Hmmm, short question for a possibly very long and detailed answer.

The Futures price is the price at which people expect the underlying stock/index to close on expiry, every given point in time.
The difference between the spot and the future is called the spread or the basis(which is a math formula). It takes into account time to expiry, interest rates etc. Read more on futures pricing and other attributes to a futures trade.

Options trading, on the other hand, is a whole different ballgame. The options price consists of an intrinsic value and a time value. You need to understand the options greeks to get a better understanding of options price moves and then choose the right options strategies while trading - selection of the right strikes, entering when the greeks are in your favour etc. Read more on options theory and options strategies.



Thanks for sharing all the userfull information.

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