foreign currency

In FX futures, their denominations and maturity dates are stansardized for example: GBP 50,000 with maturities at Mar, June, September and December. However, maturity dates and denominations are tailor-made for customers. Besides, there are no counterparties risks for futures as futures are settled through centralized exchanges while options are settled through your counterparties. Therefore, if you want to unwind your hedging position, it is very easy in futures but very difficult in options, in termes of liquidity. In addition, you need to deposit money for margin requirements on futures, and in some cases deposit further money for maintaining margin. But in options-hedging, you only need to pay for the premium for buying the options and no further cash requirements.