Options vs futures: Understanding the key differences for retail traders

Options are financial instruments that grant their owner the choice, but not the requirement, to either purchase or sell a specific asset at a predetermined price by a certain date. There are two primary types of options: call options, enabling the owner to buy the asset, and put options, permitting the owner to sell the asset. This adaptability empowers traders to capitalize on market fluctuations without being obligated to execute a trade unless it proves advantageous.