{"id":1079,"date":"2022-10-14T14:03:59","date_gmt":"2022-10-14T14:03:59","guid":{"rendered":"http:\/\/localhost\/nuwordpress\/?post_type=faqpage&#038;p=1079"},"modified":"2022-10-17T08:41:39","modified_gmt":"2022-10-17T08:41:39","slug":"what-is-the-difference-between-futures-options","status":"publish","type":"faqpage","link":"\/nuuu\/faqpage\/what-is-the-difference-between-futures-options","title":{"rendered":"What is the difference between Futures &#038; Options?"},"content":{"rendered":"\n<p>Futures and options are both financial instruments used to profit on, or hedge against, the price movement of commodities or other investments.<\/p>\n\n\n\n<p>The key difference between the two is that futures&nbsp;require&nbsp;the contract holder to buy the underlying asset on a specific date in the future, while options as the name implies give the contract holder the&nbsp;option&nbsp;of whether to execute the contract.<\/p>\n\n\n\n<p>That difference has an impact on how futures and options are traded and priced and how investors can use them to make money.<\/p>\n\n\n\n<p>Future: Contract holder is required to take ownership of the underlying asset<\/p>\n\n\n\n<p>Options: Contract holder has the right, but no obligation, to purchase an underlying asset<\/p>\n\n\n\n<p>Future: Price of the future purchase determined by current market price<\/p>\n\n\n\n<p>Options: Price of the future purchase specified in the contract<\/p>\n\n\n\n<p>Future: Price can fall below $0<\/p>\n\n\n\n<p>Options: Price can never fall below $0<\/p>\n\n\n\n<p>Future: Less volatile price changes Options: Value quickly declines over time and fluctuates more widely with changes in the underlying asset&#8217;s value<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Futures and options are both financial instruments used to profit on, or hedge against, the price movement of commodities or other investments. The key difference between the two is that futures&nbsp;require&nbsp;the contract holder to buy the underlying asset on a specific date in the future, while options as the name implies give the contract holder [&hellip;]<\/p>\n","protected":false},"featured_media":0,"template":"","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"\/nuuu\/wp-json\/wp\/v2\/faqpage\/1079"}],"collection":[{"href":"\/nuuu\/wp-json\/wp\/v2\/faqpage"}],"about":[{"href":"\/nuuu\/wp-json\/wp\/v2\/types\/faqpage"}],"wp:attachment":[{"href":"\/nuuu\/wp-json\/wp\/v2\/media?parent=1079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"\/nuuu\/wp-json\/wp\/v2\/categories?post=1079"},{"taxonomy":"post_tag","embeddable":true,"href":"\/nuuu\/wp-json\/wp\/v2\/tags?post=1079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}