Current location - Trademark Inquiry Complete Network - Futures platform - What are the two types of option trading?
What are the two types of option trading?

The types of buying and selling options include the buyer buying a call or put option, and the seller selling a call or put option.

Buy opening, buying closing, selling opening, selling closing, covered opening, covered closing and other transaction types specified by business rules.

(1) Opening a position by buying means buying a call option or a put option. If the investor already holds a position as the right party or does not hold a position, the right will be increased after the purchase is completed. The position is held by the obligated party; otherwise, the obligated party's position is first hedged, and then the right party's position is increased. (Buy an option contract, pay the premium, and enjoy the rights~a bit like buying insurance and paying the premium)

(2) Buying to close a position means that the investor holds the position as the obligated party (excluding Covered opening position), buying options, becoming an unobligated party or reducing the position of an obligated party. (You must have an obligation position before you can buy and close it. What you close is an obligation position)

(3) Selling to open a position refers to selling a call option or a put option. If the investor has taken the obligation If the right party holds a position or does not hold a position, after the selling transaction is completed, the obligatory party's position will be increased; otherwise, the right party's position held by the right party will be hedged first, and then the obligatory party's position will be increased. (Insurance sellers need to settle claims under certain conditions, so pay attention to the risks)

(4) Selling to close a position refers to selling a call option or a put option. This can only be done when the investor holds the position as the right party. Sell ??to close the position, and the number of contracts sold must not exceed the position held. (When the premium rises, you can sell and close the position. This is somewhat similar to stocks. When the stock price rises, you close the position)

(5) Covered opening means that investors own the underlying securities ( (Including purchases on the same day), sell the corresponding call options (100% guaranteed by cash bonds, no cash deposit required), that is, increase the covered position through covered opening. Since there are corresponding equal parts of the cash bonds as guarantee, which can be used to deliver the cash bonds when the option is exercised, it is called "covered".

(6) Covered closing refers to a trading order to buy options to close the contract or reduce the number of obligated positions when holding a covered obligation position.