During the options trading process, you need to pay attention to the following risk matters

Risks in the selection of the contract subject matter The subject matter of the option contract is selected by the Shanghai Stock Exchange in accordance with relevant rules and is not determined by the issuer of the subject matter of the contract. The Shanghai Stock Exchange and the underlying issuer of the contract do not assume any responsibility for the listing, listing, contract terms and options market performance of the option contract. The buyer of an option does not have the rights that the holder of the subject matter of the contract should enjoy before the option is exercised and settled.

The risk of not exercising the option when it expires. When conducting option buying transactions, investors can choose to close the option contract, hold it until it expires and exercise it, or let the option contract expire without exercising it; investment If an investor chooses to hold an option until it expires and exercises it, he or she should ensure that there is sufficient contract subject matter or funds required for exercise in the corresponding account. If an investor holding a rights position chooses not to exercise the rights when the contract expires, the investor will lose all the investment amount paid, including premiums and transaction fees.

Risk of Opening a Sell Position The risk of selling option trading is generally higher than the risk of buying option trading. Although the seller can obtain the premium, it also faces fluctuations in the price of the contract subject due to its obligation to exercise the contract, and may suffer losses that are much higher than the premium.

Price fluctuations and other market risks When trading options, investors should pay attention to the price fluctuations of the underlying contract, option price fluctuations and other market risks and the losses they may cause, including but not limited to the following situations: due to If the price of the option subject fluctuates, the option will have no exercise value, and the option buyer will lose all the premium paid; since the option seller has to bear the obligation to exercise the option, the loss caused by the price fluctuation of the contract subject may be far greater than the premium received.

Risk of price limit The calculation method of the price limit of options is different from that of spot price. Investors should pay attention to the daily price limit of option contracts.

Risk of Contract Adjustment When trading options, investors should pay attention to what will happen when the underlying contract is subject to dividends, distributions, bonus shares, transfer of reserve funds to share capital, allotment of shares, share splits or mergers, etc. If the subject matter of the contract is ex-rights and ex-dividend, the Shanghai Stock Exchange will adjust the contract unit and exercise price of the unexpired option contract, and the trading and settlement matters of the contract will be carried out in accordance with the adjusted contract terms.

Risk of Contract Suspension During the duration of an option contract, if the underlying contract is suspended, trading of the corresponding options contract will also be suspended; when options transactions experience abnormal fluctuations or are suspected of violating laws and regulations, the Shanghai Stock Exchange may suspend trading of the options contract.

Risks of position limit, purchase limit, and position opening limit. When conducting options transactions, investors should strictly abide by the relevant business rules of the Shanghai Stock Exchange and the regulations on position limit, purchase limit, and position opening limit in the market announcements, and When required by the Shanghai Stock Exchange, report in a timely manner within the specified time. If an investor's position exceeds the prescribed limit, he or she will face the risk of being restricted from opening a selling position, opening a buying position, or being forced to close a position.

Liquidity risk of the contract Investors should pay attention to the risk that the option contract may be difficult or impossible to close and the losses it may cause. When the market trading volume is insufficient or the unilateral price limit continues to appear, options may Contract holders may not be able to find opportunities in the market to close their positions.

Risk of portfolio strategy positions. Portfolio strategy positions do not participate in the automatic hedging of positions at the end of each day. During the duration of the portfolio strategy position, if more than one component contract reaches the automatic release trigger date specified by the Shanghai Stock Exchange and China Clearing and Clearing Co., Ltd. , the combined strategy is automatically canceled at the end of the day. Except for the types of combination strategies specified by the Shanghai Stock Exchange, investors are not allowed to unilaterally close positions in the component contracts corresponding to the combination strategy.

The risk of front-end control is turned over to the clearing participant as a unit. The exchange conducts front-end control on the sales opening, buying opening and other declarations of the derivatives contract account that the clearing participant is responsible for settlement. Regardless of whether the investor's margin is sufficient, if the settlement participant's daily margin balance is less than the opening margin amount corresponding to the sell opening declaration or the rights amount corresponding to the buy opening declaration, the corresponding sell opening or buying The position opening declaration is invalid.