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Difference between futures trading and options trading

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alice jenifferze
Difference between futures trading and options trading

Cryptocurrency Exchanges never delayed to update itself. The very soon latest turns out to be old in this industry. Once, people hesitated to sign up in the crypto exchanges and thought of the Crypto market as the risk but, now in 2020, the world has turned 180 degrees in their view for the Crypto market and have recognized it.

 Crypto market headlines are filled with futures trading and options trading, But, many blooming traders often get confused about what is the difference between futures trading and options trading

 

Options Trading

Options trading, we could say options contract is the kind of agreement that lets traders buy or sell assets with a fixed price on a fixed date in the future

Future trading is the same as options trading, traders have to choose the fixed date, the predetermined price for an asset.

Futures trading

Here, the buyer and seller obligated to proceed with the trading.

Future trading can be used for long term as well as short term. If the trader expects the decline in price, they bought short term trading and if the trader believes in an increase in price, they buy long term future trading

Key Difference

  • The notable key risk difference is Future Trading is the obligation and the Options trading is the right.
  • The Risk involved in the options trading is lesser than the Future trading

Options trading is designed profoundly for Selling and buying with call options and put options

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alice jenifferze
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