There is no upfront cost when entering into a futures contract. But the buyer is bound to pay the agreed-upon price for the asset eventually. The buyer in an options contract has to pay a premium. The payment of this premium grants the options buyer the privilege to not buy the asset on a future date if it becomes less attractive. Should the options contract holder choose not to buy the asset, the premium paid is the amount he stands to lose. In both cases, you may have to pay certain commissions.

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