An introduction to stock futures trading, learn to trade

They both are the type of agreement which has a pre-decided deadline for buying and selling of underlying assets.Both come in equity and both gives better opportunity to make an investment and gain valuable profit.

If someone purchases stock options, his financial liability is to pay the premium cost of assets at the time of purchasing while in the futures contract both buyer and seller have liability than options means if the price of the stock goes against then they are liable to manage their trading account.They have to manage their capital.

The stock option provides flexibility to the investor to buy and sell particular underlying assets while future stocks do not provide flexibility to investors.

In stock futures, the buyer of assets is responsible for buying particular stock from the seller of that contract on the expiry date of the contract while in stock options, a person who purchases call has right to buy and sell stock at a specific price.