Option trading is a kind of right trading. In futures option trading, the option buyer obtains the right to buy or sell a certain number of futures contracts from the option seller at a predetermined price (exercise price) within the time stipulated in the contract after paying a fee (royalty).
After receiving the option fee paid by the option buyer, the option seller must unconditionally perform the obligations stipulated by option contracts as long as the option buyer requests to exercise his rights. In futures trading, buyers and sellers have equal rights and obligations.
In contrast, the rights and obligations of buyers and sellers in option trading are not equal. After paying the patent fee, the buyer has the right to execute and not to execute, but has no obligation; When the seller receives the royalty, no matter how unfavorable the market situation is, once the buyer proposes to implement it, he is obliged to perform the option contracts, but has no right.