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Are options better than futures?

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Futures and options have their own advantages and disadvantages. Futures contracts move faster than options contracts because options move in parallel with futures contracts.

As an investor in options, you have the option to withdraw from your contract at any time. In the case of options, buyers are not obliged to fulfill the contract. With futures, however, both buyers and sellers are obliged to fulfill the contract.

With options, the risk is limited to the premium you pay for the contract. The cost of an option is only a very small percentage of the cost of the underlying asset. Futures contracts, on the other hand, are based on the value of the underlying asset. You cannot know with certainty how much you may gain or lose. The losses on futures contracts can exceed your original investment.


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