The basic principle of option market: option is a financial tool, which gives the buyer the right to buy or sell an asset at a specific price within a specific time. Options are divided into call options and put options. Call option gives the buyer the right to buy assets at a specific price on the maturity date, while put option gives the buyer the right to sell assets at a specific price on the maturity date. In the option market, the option contract is the basic unit of trading, and investors can buy and sell the option contract. The price of option contract is influenced by many factors, such as asset price, option expiration date, exercise price, market volatility and interest rate.
Basic principle of futures market: Futures is a financial derivative, which refers to a contract to deliver a certain subject matter at a specific price at a specific time in the future. The futures market is where buyers and sellers trade through exchanges. Buyers and sellers reach a deal through futures contracts, agreeing to deliver a certain amount of goods or financial assets at a specific price at a specific time in the future. In the futures market, investors can buy and sell futures contracts, and the fluctuation of futures prices depends on changes in market supply and demand, international market prices and political and economic factors. Investors can manage risks through the futures market and avoid the risk of future price fluctuations by buying and selling futures contracts.