How futures and Options are different ?

Options and futures are two types of derivatives. The underlying instrument that gives derivatives their value, such as a stock or commodity, is what they are worth. The fundamental difference between Futures and Options lies in the obligations that buyers and sellers have to fulfill.

Futures contracts have both buyers and sellers obligated to execute it by a specific date. Options contracts are executed by the buyer. Only the seller is obligated to execute the contract.

Another difference between Options and Futures is the buyer's limit on profit and loss. In the Futures market, a buyer can make unlimited profits and losses. A buyer in the Options market can make a large profit, but only a small loss.