1. Leveraged risk stock options are traded in the form of margin trading, and the potential losses and gains of investors may increase exponentially. In particular, the total loss faced by investors who sell open options may exceed all the initial margin and additional margin paid by them, which has leverage risk.
2. Venture investors with price fluctuations should pay attention to market risks and possible losses such as price fluctuations in the spot stock market and individual stock options when participating in stock option trading. For example, if the option seller has to undertake the obligation of actual exercise delivery, then the loss caused by price fluctuation may be far greater than the royalty it receives.
3. Venture investors who can't liquidate individual stock options should pay attention to the risks that individual stock option contracts may be difficult or unable to liquidate, as well as possible losses. For example, when the trading volume in the market is insufficient or a reasonable trading price cannot be found in the market, investors, as holders of option contracts, may face the risk of not being able to close their positions.
4. Venture investors whose rights expire should pay attention to the last trading day of individual stock option contracts. If stock options
The buyer did not exercise his rights on the last trading day of the contract, so the value of the option is zero after expiration, and the contract rights are invalid. Therefore, investors should be reminded whether to exercise the right on the expiration date of the contract, otherwise the option buyer may lose the paid ownership interest and possible income.
5. Venture investors whose stock option trading is suspended should pay attention to the abnormal fluctuation of stock option trading or suspected violation.
When the law violates the rules, there may be risks such as suspension of stock option trading. The above contents are only for the purpose of investor education, and the listed risks do not cover all possible investment risks when investors participate in investment.