Concepts 5 min read
Futures vs Options
Expert Analyst
Raffiq SR
Last Updated
5/16/2026
Share Strategy
Futures vs Options: Choosing the Right Instrument
Both are derivatives, but they behave very differently. Choosing the right one depends on your view and capital.
Futures
- Linear Payoff: Moves 1:1 with the underlying.
- No Decay: Only pay margin and MTM.
Options
- Non-Linear: Price is affected by Volatility and Time.
- Leverage: Can control large positions with small premiums.
Strategy FAQ
Which is riskier?
Naked futures can have larger MTM swings, while options can lose 100% of value if they expire OTM.
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