Option, also known as option, is a contract that gives the option buyer the right (but not the obligation) to buy or sell the underlying assets at a specific price on or before a specific date. Of course, there are agricultural products options. The futures options trading of listed agricultural products is conducive to protecting the interests of investors participating in the futures market and promoting the effective play of the functions of the futures market. So what does agricultural product option mean? How to trade?

What does agricultural product option mean?

Strengthen the construction of agricultural futures market and improve the ability and level of serving agriculture, countryside and farmers. The CSRC has always attached great importance to and vigorously strengthened the construction of agricultural futures market. After years of cultivation and development, China's agricultural futures market has gradually grown into a futures market with wide variety coverage, large market scale and certain international influence. Agricultural futures option refers to the buyer's right to buy or sell a certain amount of agricultural futures at a predetermined price within the agreed time. There are six options for agricultural products, namely sugar option, cotton option, rapeseed meal option, corn option, soybean meal option and palm oil option.

How to trade agricultural options?

The futures option trading of listed agricultural products is conducive to protecting the interests of investors participating in the futures market and promoting the effective function of the futures market. So how to trade agricultural options? In addition to fundamental analysis, investors can also use technical indicators for trend analysis. For the novice who just entered the market, you can master the most basic K-line chart first, and then slowly learn other indicators. However, the technical indicators are not good enough, so you can master a few commonly used ones.

Source Baidu: Caishun Option ~

Agricultural product options can be bought up and down, and investors can judge the ups and downs by looking at the market trend, and then decide to invest. Options are traded with royalties. If you buy 10 soybean meal option, the nominal principal is XX yuan, the royalty ratio is X%, the royalty ratio is XX yuan, and the exercise period is one month, then you can get the right to use 10 soybean meal option for one month by paying the royalty. For futures investors, the risk of agricultural product options can be controlled by themselves, and there is no need to worry about missing the market because of insufficient funds. You don't have to put your eggs in the same basket, which increases the risk and reduces the income.