1. RIGHT OR OBLIGATION :
Futures are agreements/contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer & seller, on or before a specified time. Both the buyer and seller are obligated to buy/sell the underlying asset. In case of options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset.

2. RISK
Futures Contracts have symmetric risk profile for both the buyer as well as the seller. While options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an option, however, the downside is unlimited while profits are limited to the premium he has received from the buyer.

3.  PRICES:
The Futures contracts prices are affected mainly by the prices of the underlying asset. While the prices of options are however, affected by prices of the underlying asset, time remaining for expiry of the contract & volatility of the underlying asset.

4. COST:
It costs nothing to enter into a futures contract whereas there is a cost of entering into an options contract, termed as Premium.

5. STRIKE PRICE:
In the Futures contract the strike price moveswhile in the option contract the strike price remains constant.
6. LIQUIDITY:
As Futures contract are more popular as compared to options. Also the premium charged is high in the options. So there is a limited Liquidity in the options as compared to Futures. There is no dedicated trading and investors in the options contract.

7.  PRICE BEHAVIOUR :
The trading in future contract is one-dimensional as the price of future depends upon the price of the underlying only. While trading in option is two-dimensional as the price of the option depends upon the price and volatility of the underlying.

8. PAY OFF:
As options contract are less active as compared to futures which results into non linear pay off. While futures are more active has linear pay off .