although as per my knowledge derivatives itself a risky investment in shares but future trading is more risky than options.
furthermore if there are other reasons plz explain
Futures v/s Options
5 Reasons Futures Wins
Fixed truthful trading costs in Futures
Futures pricing is simple to recognize
Futures trading is model for dealing specific markets
Liquidity and spreads
No time perish cause in futures
Yes, futures are riskier than options. If you apply risk and return theory, the options will generate higher returns or losses compared to options because of the high risk. The option (stock) value is derived from stocks and the change in the value of the stock depends on the company's performance and the impact of external variables such as the economy, technology, political environment, etc. The value of the futures are determined by the external variables, and if there is a change in the external environment, the impact on the value is immediate and significant. That's why these instruments are riskier than options.
Futures have high risk as once you are in contract to buy or sell, you are obliged to do so or square off. In options you can avoid transaction if price is not in your favor but it comes at high option premium which may reduce the pay off.
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