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Futures and Options Difference Explained – 2 Types of Derivatives


Futures as well as Choices Distinction is not understood to lots of investors or investors. Primarily, Futures as well as Alternatives are both types of derivatives. Usually there is a complication amongst financiers and traders between options and also futures.

Let us recognize FUTURES first. It is a contract between 2 events to get or market a possession at a particular time in future at a certain price. It can be shut on or prior to expiry. An investor gets futures if he is running short of funds. There is a responsibility for both buyer and also vendor of futures agreement to carry out the contract at a specific day.

On the various other hand, CHOICES give right to the purchaser, not a commitment yet vendor has responsibility to comply with the agreement. There are two sorts of options i.e. Call options and Put choices. Call give the right to but and Place provide the right to offer.

The profit as well as loss of futures buyer are unlimited. Whereas the loss of alternatives purchaser is restricted whereas earnings is unlimited. The margin requirement is HIGH in futures and also reduced in alternatives.

Futures are utilized by speculators as well as to tap arbitrage possibilities i.e. buy in cash as well as sell in futures at a higher price. On the other hand, alternatives are made use of for hedging. The seller of alternatives pocket the costs upfront.

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28 Thoughts to “Futures and Options Difference Explained – 2 Types of Derivatives”

  1. Pranav Rawat

    I lost my 70,000 rupees in 2days in option trading…I m sad bcoz it was my hard earned money..

  2. Sachin Patil

    सर आपसे गुजारीश है ही आप हमे एक examples कॉम्पुटर पर देकर हमे future and option Hume Samjhaiye

    1. Kshitij Sharma


    2. Nitin Bhatia

      I will share. It is imp to learn theory before practical.

  3. Ravi Shekhawat

    Sir hedging or option chain analysis or detail me bataiye.

  4. Ramesh Ranjane

    Thanks for the video,
    Two days back I have followed it intagram account, but still I am not able to see the msgs in it
    Pl guide

    1. Nitin Bhatia

      I have started sharing news stories.

  5. Jagdish Haldankar

    Thanks Sir! I have traded Options with 60% success rate, but futures no knowledge may due lack of capital. But got good insight into futures.Thanks again!

  6. Sushmita Dabbiru

    Sir you are amazing !!

  7. Chandrahas Shetty

    Nitinji, thanks for sharing very informative videos. I have a question. How do you use the options premium data while shortlisting a stock for swing trade?

    1. Nitin Bhatia

      I shared in my video on option chain analysis.

  8. Nitin Bhatia

    🔴🔴 How much should i INVEST in STOCKS ? (HINDI) 👇👇

    1. Pritam Singh

      Sir ji aisa video kaun dekhega without live example.

    2. Jaya basak

      Abe bahinchood Tu news parne ja..lawda ye details ko thik se described Kiya Kar betichood ..

  9. Sures Kumar

    Sir please make a video -about pro and cons of btst trading or risk of short delivery of stocks during btst? Thanks for provide free of cost stocks market classes.. thanks again to you and to your channel.

  10. prem _J

    धन्यवाद सरजी
    option के बारे मे और detail मे बताई येे
    लालच बुरी बला है ये हमेशा याद रखताहू आपकी बात f&o मे तो ये बहोत जारुरी है ॥
    😊😇 🙏🙏

    1. Nitin Bhatia

      I will share detailed videos.

  11. k t

    Sir bit confusing . Can you please explain it some other way . Would be appreciated . Thank u .

  12. Gagandeep Singh

    Would like to see more video on Future and Option Trading Strategies

  13. Sivaprasad S

    Thanks for giving insight to FnO..

    Please upload a trade video by analysing option chain

  14. kamlesh jha

    Maja Aa Gaya Sir Jee Bahut Din Se Enatajar Kar Raha Tha Es Vedio Ka, “Charan Saparas”

  15. mandy Singh

    option is like insurance

  16. Abinash Shankar Srivastava

    Sir, great teaching. we r always getting benefits from your new vdo. Thx is small word for you

  17. Ashish Kumar

    Thanks a lot, Sir.

  18. navaratn bharti

    Nicely explained sir watching 2 twice to make sure i understand each and every point.


    Sir, what is the cost for rollover in future contact.

  20. Azad Ali Shah

    Sir ji, what is “Call” and “Put” options?

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