1. Risk management and insurance functions

Option trading provides insurance function for futures traders and can be used as a risk management tool. By purchasing option contracts, futures traders can hedge or protect their future positions and reduce the impact of price fluctuations on their positions, thus reducing risks. In particular, call options can be used to protect future positions from falling prices, while put options can be used to protect future positions from rising prices.

2. Strategy combination and arbitrage opportunities

The combination of options and futures can form a variety of complex strategy combinations, such as option arbitrage strategy. The flexibility of options allows investors to use the spread and time value of options for arbitrage trading. These strategic combinations and arbitrage opportunities can provide futures traders with more investment and trading options and optimize the risk-return ratio.

3. Market liquidity and the expansion of participants.

The introduction of option trading can increase the liquidity of the futures market and attract more market participants. Option trading provides diversified investment tools and trading strategies, attracting more investors to participate, thus promoting the activity and liquidity of the market.

4. Risk transfer and agricultural product market stability

For markets with fluctuating prices such as agricultural products, option trading can provide a tool to lock in risks. Agricultural producers and order companies can use option trading to hedge their value and reduce the impact of price fluctuations on their income and costs. The development of option market can provide conditions for the stability of agricultural products market and the protection of farmers' income.