Buying an option, or a future, allows an investment to be held with a smaller amount of funds. If the investor is correct about the investment, but has only a small amount of funds, then some position is better than no position.

Also, an option is a set amount of financial cost or risk. A future, on the other hand, could require additional investment to hold the position.

Buying an option, or a future, allows an investment to be held with a smaller amount of funds. If the investor is correct about the investment, but has only a small amount of funds, then some position is better than no position.

Also, an option is a set amount of financial cost or risk. A future, on the other hand, could require additional investment to hold the position. Both options and futures have long-term contracts available.