Benefits:
1. Reduce transaction risk
T+0 trading allows investors to open and close positions at any time during trading hours, so it can respond to market changes in a more timely manner and reduce trading risks. Even if there is an error in the transaction process, it can be flexibly adjusted to avoid causing heavy losses.
2. Easy to grasp trading opportunities
T+0 trading mode allows investors to trade many times in the same day, so they can grasp the trading opportunities brought by market fluctuations more flexibly. Even if the overall market changes little, intraday fluctuations can still provide short-term traders with multiple trading opportunities, and then accumulate profits.
3. Not affected by the market the next day
A significant advantage of T+0 trading is that it ends on the same day and is not affected by market changes the next day. This will allow investors to handle the trading situation of the day clearly and clearly at the end of the day, and keep the funds highly flexible.
4. Avoid the loss of time value
In option trading, time value is an important consideration. T+0 trading mode helps to avoid the loss of time value caused by the passage of time. This means that investors can make more effective use of the time value of option contracts and reduce the risk of loss.
Disadvantages:
1. High transaction cost
Intraday trading usually means an increase in trading frequency, so the transaction cost will also increase accordingly. For investors who frequently trade T+0, the transaction cost may become a factor that cannot be ignored, which will affect the final profit level.
2. High risk
The high frequency and rapid change of T+0 trading means that the trading risk is also relatively increased. If investors can't accurately grasp the market direction, they may suffer great losses in a short time. In addition, day trading also needs investors to keep a close eye on the market, which may easily lead to psychological imbalance and operational errors.
3. Time pressure
T+0 trading requires investors to make quick decisions in a short time, which brings time pressure to investors. If investors can't make correct decisions within a limited time, they may miss trading opportunities or fall into a loss situation.
Conclusion:
Although the T+0 trading system of options has brought many benefits, it is obviously difficult for intraday band operation. In this trading mode, even if the direction is judged correctly, the profit is often limited; Once the judgment is wrong, it may cause greater losses. Especially for long-term positions, it is very important to choose the right contract and avoid excessive consumption of time value. Therefore, we should also give the contract a proper rest time.
In band operation, it is suggested to temporarily avoid flat contracts with more time value and favor real contracts. In addition, in order to better grasp the changing law of option price, it is also important to set stop loss and take profit in time.
Especially when the volatility level is not high, the time value contained in the option will be higher. Especially after the option price skyrockets, with the adjustment or slowdown of the trend, the buyer's mood may be affected, and the seller's power will gradually accumulate.
Therefore, trading options cannot ignore the passage of time. Even if you are very optimistic about the market prospects, you should remain calm and have ample opportunities to wait for buying again to ensure the healthy development of the transaction.