Current location - Trademark Inquiry Complete Network - Futures platform - What exactly is an option?
What exactly is an option?
Option is the right of investors to buy or sell assets in the future.

What exactly is an option? An option is a contract between a buyer and a seller. After paying a certain amount of money (royalty) to the seller, the buyer has the right to buy or sell a certain number of specific subject matter to the seller at a predetermined price in a specific period or date in the future, but has no obligation to buy or sell.

There are four basic options trading methods: buying call options, buying put options, selling call options and selling put options.

It is good for us to understand the concept of options. In fact, when trading 50ETF options, what we need more is our judgment on the future trend of the market.

It is also very simple: if you think the SSE 50 index will rise, buy a call option contract; When you think the SSE 50 Index will fall, buy a put option contract.

How to trade options? By paying a certain fee to the option seller (generally 0%-5% of the contract transaction amount of 65438+), the option investor obtains the right to buy or sell the trading stock at the contract price during the delivery period, including the right to choose not to buy or sell (the general price is unfavorable to the investor). In other words, after the expiration, if the stock price changes are beneficial to investors, you can choose to buy or sell; When it is unfavorable, you can give up buying or selling.

Option trading rules 1, the rights and obligations of buyers and sellers are different. The buyer has the right but no obligation after paying royalties; The seller has no rights and obligations after receiving royalties.

2. Buyers and sellers have different income and risk characteristics. The biggest loss for the buyer is royalties, and the potential income is huge; The seller's biggest gain is royalties, and the potential loss is huge.

3. Buyers and sellers have different requirements for down payment. The buyer does not need to pay a deposit, but the seller must pay a deposit as a performance guarantee.

Option trading time The trading time of option contracts is synchronized with the stock market, and the trading time is from 9: 15 to 9:25, 9:30 to 1 1:30, 13: 00 to 15:00 every trading day. Among them, 9: 15 to 9:25 is the opening call auction time, 14:57- 15:00 is the closing call auction time, and the rest is the continuous bidding time.