Futures vs Options

Let's compare the mechanics of two of the most popular derivatives used by traders in the DeFi space across various blockchains, including TON:

📈 Leverage
- Futures have configurable leverage. Higher leverage increases potential profits but also proportionally increases risk.
- Options have fixed leverage, depending on the option period. Shorter periods often provide higher leverage without risking more.

💰 Fees
- Futures usually involve a small fee when opening a trade. Additionally, a funding fee is periodically charged to maintain leveraged positions.
- Options require a one-time payment (premium) at the moment of purchase. This premium is non-refundable, regardless of the outcome.

🚫 Liquidation
- Futures have a liquidation price. If the asset price reaches this level, the trade is fully liquidated, resulting in a total loss of the position.
- Options are never liquidated during their period. This is a significant advantage, particularly on TON, where transactions may take several minutes to process. Price fluctuations during this period do not affect the trade.

Both derivatives are powerful tools for traders and can be used in different scenarios. Futures offer the potential for higher profits with increased risk, while options provide fixed risk and greater flexibility.

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