Put option refers to giving the owner the right to sell assets at a specific price "strike price" on or before the maturity date.
Limit buying and selling are both limit orders: limit buying means that investors instruct their brokers to buy when the stock price falls to the agreed price or lower, and limit selling means that investors instruct their brokers to sell when the stock price rises to the agreed price or higher.
Stop-loss orders and stop-loss orders are one kind of stop-loss orders: stop-loss orders mean that stocks will only be sold when the stock price falls to a specified price, and stop-loss orders mean that stocks will only be sold when the stock price rises to a specified price.
As an investor, if I already have a stock, if I negotiate with my broker that the stock falls below 5 yuan, I will sell it, because I expect that the stock may continue to fall to 3 yuan or 2 yuan, and I don't want to take the risk of continuing to lose money, which is price-limited selling, but if I negotiate with my broker that I can only sell more than 7 yuan, it is price-limited selling, because I expect that the stock will rise. A purchase restriction is similar to a stop order.
Just now, we can see that if I execute a stop loss order, that is, the securities firm must sell the stock when it falls to 5 yuan, then I will lose money if the stock price rebounds in the future. If it is a put option, investors can still choose not to sell the stock when it falls to 5 yuan, because my expectation is that the stock price will continue to fall. If the stock price does not rebound within a certain period of time, then the stock will be sold at the original agreed price (5 yuan Duo), and I earned the difference between the market price and the agreed price. The owners of put options and call options can choose the right to sell or not to buy or not to buy when the stock reaches the agreed price, which is different from stop loss and limit order.
The copyright belongs to the author, and the author should be contacted for authorization when reprinting, and the source should be indicated when quoting.
Author ID: Huang Huilin
Link: /ViWLmWcPv/