Legal analysis

For the seller, it is the reward for selling futures options, that is, the transaction price of futures options. For the buyer of futures options, the option fee is the highest limit that the buyer's options may suffer losses. For the seller, selling futures options can get a royalty income immediately, without having to deliver the futures contract immediately. Of course, this also makes the seller face certain market risks, that is, no matter how the price in the futures market changes, the seller must be prepared to perform the contract. Like futures trading, in option trading, option premium, that is, option trading price, is the only element in option contract that can be negotiated on the exchange. Other contract elements have been standardized. The final determination of premium must also be made by the brokers of options buyers and sellers in the trading hall through public bidding. Option premium, that is, the price of buying and selling option contracts, is the only variable, and other elements are standardized. Option fee is the fee that the buyer of the option must pay to the seller in order to obtain the rights conferred by the option contract, which depends on the final price, expiration time and the whole option contract. For the seller of options, the royalty is the reward for selling options, that is, the transaction price of options. If the option buyer can make a profit, he can choose to exercise his rights at the exercise price on the expiration date or validity period of the option. If he suffers losses, he will choose to give up his rights, and the biggest price he pays is the royalty. Therefore, for the option buyer, the risk is limited and predictable, so the option buyer does not need to pay the deposit when trading the option. The seller of options faces the same risks as futures trading, and the trend of futures prices is unpredictable, so the seller of options must pay a certain margin to show that it has the ability to cope with potential performance obligations.

legal ground

Article 89 of the Civil Code of People's Republic of China (PRC) * * * The parties may agree that one party shall pay the deposit to the other party as security for the creditor's rights. After the debtor performs the debt, the deposit shall be used as the price or recovered. If the party paying the deposit fails to perform the agreed debt, it has no right to demand the return of the deposit; If the party receiving the deposit fails to perform the agreed debt, it shall return the deposit twice.