Source Baidu: Caishun Option
How to operate futures options?
Futures option is the option of futures contract, that is, the obligee pays a certain royalty and has the right to choose to buy or sell futures contract at the agreed price within a certain date. Futures options are based on futures contracts, and the subject matter of transactions is also futures contracts, not commodities or financial products themselves. Investors must have short-term thinking when preparing options trading. The common option trading mode is T+0, and investors can buy and sell at any time in a short time.
Futures speculation refers to the futures trading behavior in which traders predict the future price changes of futures contracts in order to obtain the spread income in the futures market. From this perspective, arbitrage is also chasing spreads, which can also be considered as a special form of speculation. Historically, futures trading has been conducted in the trading hall through oral bidding by traders. Most futures trading is done through electronic trading. When trading, investors input trading orders through the computer system of the futures company, and the matching system of the exchange conducts matching transactions.
Which is more risky in futures options?
Options only face the risk of loss of equity premium, while futures trading may face the risk of forced liquidation. Although both are leveraged investments, investors are faced with the risk of price fluctuation in the sales market from the moment the contract is signed. Only two routes can change the price. Therefore, compared with the uncertain market situation of futures trading, the risk of options is relatively small. The income of the option buyer fluctuates with the change of market price, and its loss is limited to the insurance premium of the option; The seller's income is only the insurance premium of selling options, but its loss is not fixed. Both sides of futures trading are faced with unlimited profits and endless losses.