After receiving the option fee paid by the option buyer, the option seller must unconditionally perform the obligations stipulated by option contracts as long as the option buyer requests to exercise his rights. In futures trading, buyers and sellers have equal rights and obligations.
In contrast, the rights and obligations of buyers and sellers in option trading are not equal. After paying the patent fee, the buyer has the right to execute and not to execute, but has no obligation; When the seller receives the royalty, no matter how unfavorable the market situation is, once the buyer proposes to implement it, he is obliged to perform the option contracts, but has no right.
Extended data:
Options are mainly composed of the following factors:
(1) execution price (also called performance price). The buying and selling price of the subject matter specified in advance when the buyer of the option exercises his rights.
(2) royalties. Option price paid by the option buyer, that is, the fee paid by the buyer to the option seller for obtaining the option.
(3) Performance bond. The option seller must deposit the performance bond in the exchange.
(4) Call options and put options. Call option refers to the right to buy a certain number of subject matter at the execution price within the validity period of the option contract; Put option refers to the right to sell the subject matter. When the option buyer expects the target price to exceed the strike price, he will buy a call option, and vice versa.
Baidu encyclopedia-option trading