Option refers to the contract that gives the holder the right to buy or sell assets at a fixed price at a certain date or at any time before that date, which originated in the American and European markets in the late18th century. According to the rights of options, there are two kinds: call options and put options. According to the types of options, it can be divided into European options and American options. According to the exercise time, it is divided into three types: European option, American option and Bermuda option.
Options can be divided into call options and put options. The former is also called call option or call option, and the latter is also called put option or put option. There are four kinds: long calls; Short call; Long release; The transaction of put option is actually the transaction of this right. The buyer has the right of execution and the right of non-execution, and can choose flexibly. Options are divided into OTC options and OTC options. OTC options trading is generally reached by both parties. When you buy a fixed-price call option and pay a small premium, you can enjoy the right to buy related futures. Once the price really rises, you will exercise the call option to get the futures long position at a low price, and then sell the relevant futures contracts at a high price according to the rising price level, get the profit of the difference, and make up the paid royalties to make a profit. If the price does not rise but falls, you can give up or transfer the call option at a low price, and the biggest loss is the premium. The biggest loss should be the difference between getting the premium and paying the premium. The buyer of the call option buys the call option because it is determined that the price of the relevant futures market is likely to rise sharply through the analysis of the price changes of the relevant futures market, so he buys the call option and pays a certain premium. Once the market price really rises sharply, he will get more profits by buying futures at a low price, which is greater than the amount of royalties he paid for purchasing options, and finally make a profit. He can also sell option contracts at a higher premium in the market, thus hedging profits. If the call option buyer is not accurate in judging the price trend of the relevant futures market, on the one hand, if the market price only rises slightly, the buyer can perform or hedge, get a little profit and make up for the loss of royalties; On the other hand, if the market price falls and the buyer fails to perform the contract, the biggest loss is the amount of patent fees paid.