1, unique profit and loss structure

Compared with investment tools such as stocks and futures, the nonlinear profit and loss structure of options is different. For long positions in futures, every time the price rises 1 yuan, and every time the price falls 1 yuan, the loss of the position increases 1 yuan. For short futures positions, the opposite is true.

It is the nonlinear profit and loss structure of options that makes options have obvious advantages in risk management and portfolio investment. Through different options, option combinations and other investment tools, investors can build portfolios with different risk-return conditions.

2. Risks of options trading

In option trading, the rights and obligations of buyers and sellers are different, which makes buyers and sellers face different risk situations. For option traders, both buyers and sellers are faced with the risk of adverse changes in royalties. This is the same as futures, that is, within the scope of commission, buy low and sell high, and you can make a profit by closing your position. On the contrary, it is a loss.