Meaning Of Futures And Options What Does "Future & Options" Means In Terms Of Stock Market?

What does "Future & Options" means in terms of Stock market? - meaning of futures and options

In finance, a futures contract is a standardized contract, traded on a futures exchange to buy or sell an underlying asset at a certain point in the future at a specified price. The future is the delivery date or the date of final settlement. The fixed price is the futures price. The price of the underlying security at the time of delivery is a settlement price.

A futures contract gives the holder the obligation to buy or sell, which differs from an option contract that gives its holder the right but not the obligation. In other words, the holder of an option contract exercise of the contract. Both parties to comply with a contract "Futures" must match the maturity of the contract. The seller delivers the goods to the buyer, or if there is a future cash payment, it will provide transfer of cash to traders that a loss for which they suffered generated a profit. To terminate the obligation prior to maturity, is the holder of the futures position offset his position by either selling a long position or buying back a shortPosition effectively closing the futures position and fulfill their contractual obligations.