Futures vs options: the difference, with a real NIFTY example
A future is an obligation. An option gives its buyer a right, for a price. That one difference changes what you pay and what you can lose. Here it is on real NIFTY numbers.
The difference in one table
| Point | Futures | Option buyer |
|---|---|---|
| What you get | An obligation to settle at expiry | A right, not an obligation |
| What you pay | Margin to your broker | The premium, in full |
| Most you can lose | Far more than the margin | The premium paid |
| Daily effect | Profit or loss settled daily | Premium moves, time value shrinks |
| Lot size | Yes | Yes |
The option seller, or writer, sits on the other side. The seller collects the premium, and keeps margin with the broker. The seller's loss can be far larger than the premium.
A real example: NIFTY, 30 October 2026
| Item | Price | One lot (65) |
|---|---|---|
| November future | 23,098.90 | ₹15.01 lakh |
| 23,050 call, 3 Nov expiry | 103.90 | ₹6,753.50 |
| 23,050 put, 3 Nov expiry | 127.30 | ₹8,274.50 |
One lot of the future moves about ₹65 for every point. The full ₹15 lakh is your exposure, even though you keep only margin with your broker.
The option buyer's whole risk is the premium paid: ₹6,753.50 for that call. But that money can go to zero by expiry.
Why a call can fall when NIFTY rises
A future follows the price. An option does not, because part of its premium is time value. From 1 October to 5 October 2026, NIFTY rose 133.8 points, from 22,422.00 to 22,555.80. The 22,600 call for the 6 October expiry still fell from 67.30 to 59.00. Read more in Option Greeks explained.
Terms to know
- Lot size: shares or units in one contract. See the F&O stocks list.
- Expiry: the last day of the contract. NIFTY monthly and weekly dates are on NIFTY options.
- Open interest: contracts still open. See open interest basics.
- Reading a chain: see option chain analysis.
Know the risk first
Futures and options carry a high risk of loss, and they are not suited to everyone. SEBI publishes investor education on derivatives at investor.sebi.gov.in. Please read it before you start.
Quick questions
What is the difference between futures and options?
Which is riskier, futures or options?
Do I pay the full contract value for futures?
Why can an option lose value when NIFTY rises?
This page explains how contracts work, using exchange day-end data. It is not investment advice and not a recommendation to buy or sell any security. TBTflow is not registered with SEBI.
Read every panel behind these numbers, chapter by chapter.
Trading by the Numbers walks through the quantitative reads behind a modern F&O dashboard — order-flow imbalance, footprints, VWAP bands, OI flow, gamma structure and the expiry endgame — in plain trader-to-trader language.