gives the buyer the right to buy an underlying
asset at a predetermined price at or before the expiry, whereas
Traditionally, an «option» contract gives the holder the right to buy or sell
an asset at a predetermined price within a certain period of time (or by an expiration date).
Options trading is a form of derivative trading in which people trade contracts that give them the rights (but not obligation) to buy or sell an underlying
asset at a predetermined price.
Futures contracts, also referred to as futures, are standardized exchange - traded financial derivatives that provide an agreement between a buyer and a seller to buy or sell
an asset at a predetermined price on a predefined date.
A futures contract is simply a contract to buy or sell a financial instrument or other underlying
asset at a predetermined price in the future.
Not exact matches
Two parties sign a contract to exchange a given amount of some
asset — a commodity, say, or a currency —
at some
predetermined price in the future.
A call option is an agreement that gives the buyer, or holder, the right to buy the underlying
asset, or stock,
at a
predetermined strike
price on or by a
predetermined expiration date.