I. Definition of Futures and Options
Futures refers to the financial derivatives that buy and sell a commodity or financial instrument at an agreed price on a specific date in the future. Futures trading is a kind of speculation, and investors can make profits according to changes in market conditions.
Option means that investors have the right, but not the obligation, to buy and sell financial derivatives of a commodity or financial instrument at an agreed price on a specific date in the future. Option trading is a kind of investment, and investors can get income according to the changes of market conditions.
Two. Risks of futures and options
Futures trading is risky, and investors need to have a high understanding of market conditions in order to accurately judge market trends and make correct trading decisions in time. In addition, there is margin risk in futures trading, and investors need to pay a certain margin to prevent their trading losses.
The risk of option trading is small, so investors can choose the right option according to their risk tolerance, thus reducing the risk. In addition, there is no margin risk in option trading, and investors can choose options according to their investment objectives, thus obtaining higher returns.
Three. Returns on futures and options
The return of futures trading depends on the change of market conditions, and investors can get returns according to the change of market conditions. In addition, futures trading can also make use of leverage to obtain higher returns.
The income of option trading depends on the price of option, and investors can get income according to the price of option. In addition, option trading can also make use of the time value of options to obtain higher returns.
IV. Trading Methods of Futures and Options
Futures trading is a kind of speculation. Investors can trade through futures exchanges or online trading systems.
Option trading is an investment. Investors can trade through options exchanges or online trading systems.
Verb (abbreviation for verb) Transaction cost of futures and options.
The transaction cost of futures trading is high, and investors need to pay a certain transaction cost and a certain margin.
The transaction cost of option trading is low, investors only need to pay a certain transaction cost, and do not need to pay a deposit.
Intransitive verbs futures and options investors
Investors in futures trading are mainly experienced investors. They need to have a high understanding of market conditions, so as to accurately judge the market trend and make correct trading decisions in time.
Investors in options trading are mainly ordinary investors. They can choose appropriate options according to their risk tolerance, thus reducing risks and obtaining higher returns.
As can be seen from the above, there are many differences between futures and options. When investors choose financial instruments, they need to choose appropriate financial instruments according to their investment objectives and risk tolerance, in order to obtain higher returns.