I’m a little confused as to when you’d prefer to use futures vs options to manage risk. Given that options are insurance, would you not use them when you don’t have a definite opinion of where the underlying will go say on the currency, but given that you have to reverse out of a futures contract, you’d be more likely to use them when you’re more certain?
options will give you the option to hedge and also keep the upside potential. Futures you would execute if you want to hedge to be totally safe
Futures provide zero cost hedge with symmetric payoff. Options requires premium but payoff is asymmetric, meaning no downside.
If you are confident of your forecast, example currency will depreciate, go for hedging with futures. If you are not confident on the forecast and need a low cost insurance, go for out of the money options. If you are very uncertain and volatility is high go for close to money expensive options.
if you do not know, or are unsure, about what direction the markets will move => use options
if you have a clear view about what will happen (more confident) => use forwards
also, if implied vol is low, then options are cheap (buy options). If vol is relatively high, use futures/forwards.