Discover and read the best of Twitter Threads about #obligated
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#Options vs #Futures
Although both are #derivatives, Futures and Options are entirely different in terms of their potential #risk and #return , #leverage and how they work.
How different are futures and options?
Although both are #derivatives, Futures and Options are entirely different in terms of their potential #risk and #return , #leverage and how they work.
How different are futures and options?
#Rights vs #Obligations
In #Futures Trading, both the buyer & the seller are #obligated to settle the contracts on or before expiry ie cover shorts or longs or rollover to next contract, regardless of how the underlying asset price moves.
In #Futures Trading, both the buyer & the seller are #obligated to settle the contracts on or before expiry ie cover shorts or longs or rollover to next contract, regardless of how the underlying asset price moves.
With #Options the buyer has the #Right, but not the #Obligation, to buy (call option) or sell (put option) on underlying asset. The option seller is #passive and must comply with whatever the option buyer does.
