Do you know who commodity options's opponent is?
When many friends first come into contact with 50ETF option trading, they will have some doubts: this option trading is too complicated, for example, will there be counterparties in the call option trading? 50etf options trading also has a counterparty. The buyer and seller of options are rivals to each other. In options trading, the counterparties of buyers and sellers are called counterparties. Counterparties can be individual investors, institutional investors, market makers or other trading participants.
Which is better, the seller or the buyer?
50ETF options can be divided into four basic trading strategies, and their corresponding market conditions are: (1) bullish: buying call options, and (2) bearish: buying put options. (3) bullish: sell call options; (4) bullish: sell put options. Which is better, the seller or the buyer? Options are divided into buyers and sellers. The buyer has the right to pay royalties, and the seller collects royalties to fulfill his obligations. The profit and loss of buyers and sellers are completely opposite. The seller's profit is the buyer's loss, and the buyer's loss is the seller's profit.
Source Baidu: Caishun Option ~
In the options trading market, most investors choose the buyer to trade, and some investors choose the seller to trade. In the option trading market, buyer's trading also has disadvantages. For example, the success rate of option buyer's transaction is lower than that of seller's, and the buyer's transaction of option contract is affected by the time value of option, while the seller's profit is based on the time value of contract. Whether the option is good for the buyer or the seller, the answer to this question varies from person to person, depending on everyone's risk tolerance.