Source Baidu: Caishun Option
Is the cotton option commodity options?
Is the cotton option commodity options? The subject matter of white sugar option and cotton option are white sugar futures contract and cotton futures contract respectively, both of which belong to commodity options. Cotton option is an option transaction with cotton futures as the target, and the expiration date of the option contract is the third trading day before the futures delivery month 1 month. Besides, there are night trading in commodity options. At present, there are six futures options: natural rubber option, soybean meal option, corn option, cotton option, sugar option and copper option.
How to calculate the premium of cotton option?
Option premium refers to the price of buying or selling options, which is variable and uncontrollable. Moreover, option premium will also be affected by option contract, option expiration date, option futures commodity, search price and futures market fluctuation. The buyer of the option does not need to pay a deposit, but only needs to pay a premium. Pay as much as the royalties. Quite simply, the premium paid by the call option is the price * contract unit * lots.
How to trade cotton options?
Commodity options involves many kinds, and ordinary investors will choose the transactions they are familiar with. For option traders, they can make use of the characteristics of options, arbitrage fluctuations, fluctuation wool, or become option sellers (insurer strategy) to make profits when trading sideways. The product risk level of cotton option is R4; Investors with risk tolerance level ≥C4 can participate in cotton option trading only after meeting the conditions of capital, trading experience and knowledge test.