High utilization rate of option funds
Liu Dongliang, a senior analyst of China Merchants Bank, said in an interview with Cai Shang of China Business News recently: "Foreign exchange option products are very flexible and can operate the exchange rate in both long and short directions. Foreign exchange options can be leveraged to be small and broad. Because of its volatility, it has a profit and loss of tens of percent in one night, which is suitable for investors with high risk tolerance. It is best for investors to have a certain professional foundation, because the price fluctuation of options is not linear and it will be more complicated to understand. "
The high risk of foreign exchange options is mainly reflected in the risk of principal loss, which may be 100%. However, Han Xiao believes that the risk in the option market is easier to control than in the stock market.
"For option investors, the capital utilization rate may be higher. The principal of 50,000 yuan may cover assets with a market value of about 6,543,800 yuan. The principal is its stop-loss line, and the option position is controlled within the stop-loss line of assets, so the option is a good financial tool. On the contrary, if the position is infinitely increased, even if the option is used as the main investment channel, the risk of the option is artificially enlarged at this time. " Han provided that.
The biggest risk in the stock market is that there is no stop loss line, while the risk in the option market is that the position is not well controlled. The two are actually closely related.
High-priced options and low-priced options have their own advantages and disadvantages.
The low threshold and high leverage of option trading are one of the reasons that attract Han Xiao to enter the market. 1 foreign exchange options are generally less than 10 dollars, but they can often enjoy leverage of dozens of times.
Compared with the fixed leverage of margin trading, the leverage of foreign exchange options is not linear, and its leverage is generally in the range of 20 times to 50 times, that is, the contract of about 100 dollars is leveraged by several dollars. Take the call option of China Merchants Bank with the exercise exchange rate of 65,438+0.04 due on March 265,438+0 as an example. On Friday, it was quoted at $3.4/lot, while the exchange rate of the Australian dollar against the US dollar was 1.07, the contract value was1$07/lot, and the leverage was about 30 times.
What makes Han laugh is that the quotation of China Merchants Bank's foreign exchange options is a bit poor, and the spread is still a relatively fixed value. Take the Australian call option as an example, the spread is constant at 0. 12 USD. This also means that the transaction cost of options with a value of $ 1 is 12%. If the option price rises to $2, the spread is still $0.65,438+02, and the transaction cost is 6%.
Han Xiao believes that the leverage and spread of options determine that high-priced options and low-priced options have their own advantages and disadvantages. Low-priced options have high leverage because of low option fees. If there is a reverse market, you can get a bumper harvest, but the low option fee also means that investors have to pay more expensive transaction costs. Although the handling fee of high-priced options is relatively low, the leverage is also reduced accordingly.
Liu Dongliang advised investors: "Don't make serious out-of-price options, which can only be profitable if the price fluctuates greatly. It is best to make options near the strike price with a long term. Generally, the target price is 200~300 points above and below the exercise price, and the option price will fluctuate faster. "