Futures and Options are financial contracts used in trading to manage risk and speculate on price movements. A futures contract obligates the buyer to purchase, and the seller to sell, an asset at a predetermined price on a specific date in the future. This means both parties are committed to the transaction, regardless of market conditions. In contrast, an options contract gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date. This flexibility allows traders to hedge against potential losses or to profit from price changes without the commitment of a futures contract.