Futures and options are the two pillars of derivative trading. Both are contracts based on the value of underlying assets but have key differences. Futures are binding contracts where the buyer and seller are obligated to transact at a predetermined price and date. They carry unlimited profit and loss potential and require both parties to maintain margin. Options provide the buyer the right, but not the obligation, to buy (call) or sell (put) the asset. Option buyers pay a premium, which is their maximum loss. Sellers (writers), however, face unlimited risk. Futures are simpler to understand but riskier, while options are complex yet offer more flexibility. Futures suit traders with directional views and strong risk appetite. Options can be used to generate income (selling premium) or hedge portfolios. Understanding the payoff structure, Greeks (Delta, Theta, Vega), and pricing dynamics is key for success. Both tools are essential in modern trading strategies.