China's commodity options is an American option, that is, it can exercise the right to buy or sell futures contracts on or before the expiration date.
Investors should carefully choose the buyer or seller of options, because the rights and obligations and profit and loss risks of buyers and sellers are different.
Buyer: Pay royalties and have rights. When opening a position, the funds are frozen according to the quotation and allocated to the seller according to the transaction price. Once paid, they will not be recovered. In the absence of deposit and additional risks, the biggest loss is the loss of 100% royalty due to the abandonment of exercise.
Seller: collect royalties and fulfill obligations. Royalties charged for opening positions are ok, and a deposit is required. If the margin is marked to the market day by day, there will be additional risks, and there will be great losses when exercising, that is, the loss of exercising MINUS the income of royalties.
Option seller's margin collection standard
Unlike futures, option deposits are collected in a disproportionate way. Commodity options margin is related to the underlying futures margin, and the option contract in hypothetical state needs to pay less.
The collection standard of option seller's deposit is the higher of the following two:
(1) option contract settlement price × trading unit of the underlying futures contract+trading margin of the underlying futures contract-half of the imaginary value of the option contract;
(2) The settlement price of the option contract × the trading unit of the underlying futures contract+half of the trading margin of the underlying futures contract.
Virtual value of call option contract =Max (exercise price-settlement price of the underlying futures contract, 0)× trading unit of the underlying futures contract;
Virtual value of put option contract =Max (settlement price of underlying futures contract-exercise price, 0)× trading unit of underlying futures contract.
Position restriction system
Even if investors have enough money, they will not hold option positions indefinitely. For non-hedging, arbitrage trading and market-making business, in order to control risks, options and futures also implement a position limit system. Option contracts and futures contracts do not combine restricted positions.
Unilateral position calculation: bullish = buy bullish+sell bearish; Bearish = buy bearish+sell bullish.
Conditions for opening an account in commodity options
654.38+100,000 yuan capital verification to quickly open commodity options: investors need to meet the following conditions:
Capital requirements: the available capital exceeds 654.38+10,000 yuan after settlement for five consecutive trading days before the application date. Available funds refer to the total amount of funds in the futures account minus the amount occupied by the margin.
Trading experience: Having more than 10 futures trading experience recognized by the Exchange or more than 20 simulated trading records accumulated over 10 trading days.
Knowledge test: after completing the suitability test, the test score is above 80 points.
There is no capital requirement for opening commodity options: investors need to meet the following conditions:
There are 50 trading days within one year before the application date.
If these conditions are met, you can directly apply for opening commodity options trading authority.