Binance Options and futures trading differ mainly in how risk, obligation, and profit potential are structured. In Binance Options, traders purchase the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before or at expiration. This means the maximum loss for an options buyer is limited to the premium paid, making risk more clearly defined. If the market moves unfavourably, the trader can allow the option to expire.

Futures trading, on the other hand, involves a binding contract to buy or sell an asset at a set price on a future date. Traders are obligated to settle the contract, which exposes them to potentially unlimited losses if the market moves sharply against their position. Because futures use leverage, small price movements can result in significant gains or losses, increasing both opportunity and risk.

Another key difference is how profit is generated. Options enable traders to capitalise on price direction, volatility, and time decay, offering both directional and non-directional trading strategies. Futures profits depend primarily on price movement in one direction. Additionally, options have expiration dates with premium decay, while futures contracts rely on margin requirements and funding rates.

Overall, Binance Options offer controlled risk and strategic flexibility, while futures trading provides higher leverage and direct exposure, making each suitable for different trading goals and risk profiles.