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What is the difference between OTC options and on-market options?

Options can be divided into many types. According to certain standards, they can be divided into on-market options and over-the-counter options. However, most investors invest in on-market options. So, what is the difference between OTC options and on-market options? What is the difference between OTC options and on-market options? 1. The degree of standardization of contracts is different: There is a standard system for on-exchange options, expiration time, execution price, and trading system, while OTC options are much more flexible in terms of expiration time, execution price, and trading system. For example, the exercise price of on-exchange options is divided into several standard ranges according to certain intervals, but the exercise price of over-the-counter options can be agreed upon by both parties to the option transaction. 2. Different types of contracts: The subject matter of on-exchange options is generally limited, while the subject matter of OTC options can be customized by investors. Therefore, the types of OTC options are more abundant than on-exchange options. Take OTC stock options as an example. In addition to ST stocks and newly listed stocks, stocks listed in Shanghai and Shenzhen can be purchased. In this way, customers will have many choices, and the risk hedging effect will be very good and highly targeted. The above is the difference between on-market options and over-the-counter options. It should be noted that at present, individual investors in my country cannot directly invest in over-the-counter options. If investors want to invest in over-the-counter options, they can only do so indirectly through the private equity products of some institutions. Do.