What is the difference between stock options and futures?

ii) Futures are mainly used for commodities, whereas options are mainly used for stocks or bonds. iii) In options trading both the buyer and seller are exposed to maximum liability, whereas in the futures contract only the buyer is exposed to the maximum liability.

Which is better trading futures or options?

When you weigh all factors, options trading is better suited for most people than futures trading. Risks are lower, flexibility is higher, and we can overcome the liquidity issue by restricting the universe of options we trade.

Are futures riskier than options?

While your level of risk tolerance is equally a contributing factor, the bottom line is that futures are riskier than options. Futures are more sensitive to slight movements on the underlying asset...