1. option: a contract that gives its purchaser the right to buy or sell a certain amount of certain assets (called basic financial assets) at the price agreed by both parties (hereinafter referred to as transaction price) or exercise price within a specified period.

2. Option fee: refers to the fee paid by the buyer to the seller in order to obtain the purchase right, also known as insurance premium.

3. The primary market is the primary market of options, that is, the issue market of options.

4. The secondary market is the circulation market where options are issued for trading. Once the issued options are listed, they will enter the secondary market.

5. Hedging: refers to the behavior that an enterprise expects to buy or sell an asset in order to reduce the market risk, so as to lock in the expected income and reduce the interest damage caused by market fluctuation to its own enterprise.

6. Price discovery: refers to the formation of a balanced price through the bidding of both parties in a fair, open, efficient and competitive futures market.

7. Basis: the difference between the spot market price and the futures market price of the same commodity.

8. Call option: A contract that gives the option buyer the right to purchase the underlying asset is a call option.

9. Put option: The contract that gives the option buyer the right to sell the underlying assets is a put option.