The difference between option trading and futures trading (1) Rights and obligations of buyers and sellers
In futures trading, buyers and sellers stipulate equal rights and obligations in the contract. In option trading, the buyer has the right to buy or sell futures contracts at the price stipulated in the contract, and the seller has the obligation to perform passively. Once the buyer puts forward the execution, the seller must solve his option status by performing the contract.
(2) Profit and loss structure of the buyer and seller
In futures trading, with the change of futures price, both buyers and sellers are faced with unlimited profits and losses. In option trading, the potential profit of the buyer is uncertain, but the loss is limited and the maximum risk is certain; On the contrary, the seller's income is limited, but the potential loss is uncertain.
(3) Deposit and royalties
In futures trading, both buyers and sellers have to pay the trading margin, but neither side has to pay the other side. In option trading, the buyer pays the royalty, but not the deposit. The seller receives royalties, but pays a deposit.
(4) Field knot method
In futures trading, investors can close their positions or make physical delivery to settle futures trading. In option trading, there are three ways for investors to close their positions: closing positions, execution or expiration.
(5) Contract quantity
In futures trading, futures contracts are only delivered in different months, and the quantity is fixed and limited. In option trading, there are not only differences in months, but also differences in exercise price, call option and put option. Moreover, with the fluctuation of futures prices, new option contracts with strike prices have to be linked, so the number of option contracts is more.
Options and futures have their own advantages and disadvantages. The advantage of option lies in its risk-limiting nature, but it requires investors to pay the cost of royalties, and only after the changes in the price of the subject matter make up for the royalties can it make a profit. The emergence of options, whether from the perspective of investment opportunities or risk management, provides more flexible choices for investors with different needs.
What are the main varieties of foreign futures that deserve attention? The main varieties of foreign futures are: copper and aluminum of London Metal Exchange (LME); COMEX copper; CBOT soybean, soybean meal, wheat and corn; Rubber of Tokyo Commodity Exchange; Crude oil and fuel oil in the New York Mercantile Exchange; New york Cotton Exchange (NYCE); Singapore International Finance Exchange (SIMEX) fuel oil, etc.
LME copper futures contract
Trading variety cathode copper: grade a.
The contract unit is 25 tons.
The quotation unit is USD/ton.
The lowest variable price is 0.5 USD/ton.
There is no limit on the daily limit board.
The contract shall be delivered daily within 3 months after the delivery date; Deliver 3 to 6-month contracts every Wednesday; Contracts of 7 to 63 months are delivered on the third Wednesday of each month.
Delivery grade The grade of Grade A copper recognized by London Stock Exchange conforms to the British BSEN 1978: 1998 standard classification specification.
Delivery warehouse designated by the exchange.
Delivery method physical delivery
LME aluminum futures contract
Trading variety advanced primary aluminum
The contract unit is 25 tons.
The quotation unit is USD/ton.
The minimum price change is 0.5 USD/ton.
There is no limit on the daily limit board.
The contract shall be delivered daily within 3 months after the delivery date; Deliver 3 to 6-month contracts every Wednesday; Contracts of 7 to 63 months are delivered on the third Wednesday of each month.
Transport aluminum ingots, T-shaped aluminum bars and aluminum blocks with purity of 99.7%.
Delivery warehouse designated by the exchange.
Delivery method physical delivery
LME zinc futures contract
Trading variety advanced zinc
The contract unit is 25 tons (floating? 2%)
The quotation unit is USD/ton.
The minimum price change is 0.5 USD/ton.
There is no price limit.
The contract shall be delivered daily within 3 months after the delivery date; Deliver the next three-month contract every Wednesday; Deliver the February1-27 month contract on the third Wednesday of each month.
The delivery grade purity is not less than 99.995%, and each zinc plate blank with a weight of not more than 30 kg must have a brand recognized by LME.
Delivery warehouse designated by the exchange.
In futures trading, both buyers and sellers have to pay the trading margin, but neither side has to pay the other side. In option trading, the buyer pays the royalty, but not the deposit. The seller receives royalties, but pays a deposit.
(4) Field knot method
In futures trading, investors can close their positions or make physical delivery to settle futures trading. In option trading, there are three ways for investors to close their positions: closing positions, execution or expiration.
(5) Contract quantity
In futures trading, futures contracts are only delivered in different months, and the quantity is fixed and limited. In option trading, there are not only differences in months, but also differences in exercise price, call option and put option. Moreover, with the fluctuation of futures prices, new option contracts with strike prices have to be linked, so the number of option contracts is more.
Options and futures have their own advantages and disadvantages. The advantage of option lies in its risk-limiting nature, but it requires investors to pay the cost of royalties, and only after the changes in the price of the subject matter make up for the royalties can it make a profit. The emergence of options, whether from the perspective of investment opportunities or risk management, provides more flexible choices for investors with different needs.