1. price. The transaction price determined in the option contract is agreed by both parties, which is always called the agreed price or the finalized price. This is fixed within the validity period of the contract, not necessarily the market price of the stock, but may be higher or lower than the market price, and of course it may be exactly the same.

2. Time limit. Option contracts have a time limit and are invalid when they expire. Generally, the validity period of a contract does not exceed 1 year, and 3 months is more common.

3. quantity. Each option contract represents one hundred option bases, and the price of the option contract itself is generally based on a single option base, each base represents one, and one contract can trade one hundred copies, but not separately.

4. Option fee. Option fee is the price of the option contract, which is not equal to the market price of the stock or the stock price after the contract expires. It only represents the value of rights and adjusts accordingly with the fluctuation of the stock market. When the buyer pays the option fee, he can buy a call option or a put option. Similarly, when the seller collects the option fee, he can send a call option or sell a put option.

5. The purpose of the transaction. According to the purpose of hedging and speculation, people can trade a single contract or bind multiple contracts.

6. reconciliation. Option trading is realized through the competitive price of brokers in the market. This broker is the option clearing company, the middleman of every option transaction, the seller of all buyers and the buyer of all sellers. Option settlement companies use computers to settle each contract and provide guarantees for it. If the option seller fails to perform its obligations, the company must perform it on its behalf. Therefore, the option buyer need not worry about the seller's default.