1. 1 Definition of options and futures
Option means that the buyer has the right but no obligation to buy or sell a financial derivative product of a certain subject matter at an agreed price within the validity period of the option contract. The buyer of the option can choose whether to execute the option contract according to his own judgment, and the seller must execute it according to the agreement of the option contract.
Futures refers to financial derivatives in which buyers and sellers buy or sell a certain subject matter at an agreed price within the validity period of a futures contract. Both buyers and sellers of futures must execute futures contracts, and they cannot choose whether to execute futures contracts according to their own judgment.
1.2 characteristics of options and futures
The characteristics of options are: the buyer of options has the right but no obligation to choose whether to execute the option contract according to his own judgment; The seller of the option must follow the agreement of option contracts; The transaction price of options is affected by the market price, but not limited by the market price; The risk of options can be controlled by investors' portfolio management.
The characteristics of futures are as follows: both buyers and sellers of futures must abide by the provisions of futures contracts; The trading price of futures is limited by the market price; The risk of futures can be controlled by investors' portfolio management; The trading volume of futures is large, and investors can get higher returns.
1.3 options and futures risks
The risks of options mainly include price risk, time risk and technical risk. Price risk means that the price of options is affected by the market price. If the market price changes, the price of options will also change. Time risk refers to the effective period of options. If the validity of the option expires, the value of the option will change. Technical risk refers to the trading technology of options. If investors can't use the trading technology of options correctly, the value of options will also change.
The risks of futures mainly include price risk, time risk and credit risk. Price risk means that the price of futures is limited by the market price. If the market price changes, so will the futures price. Time risk refers to the validity period of futures. If the validity of futures expires, the value of futures will change. Credit risk refers to the credit of both parties in futures trading. If the credit of both sides of futures trading changes, the value of futures will also change.
1.4 options and futures trading methods
Option trading methods mainly include spot trading, option trading and futures trading. Spot trading refers to investors buying and selling options in the spot market, option trading refers to investors buying and selling options in the option market, and futures trading refers to investors buying and selling options in the futures market.
Futures trading methods mainly include spot trading, futures trading and option trading. Spot trading refers to investors buying and selling futures in the spot market, futures trading refers to investors buying and selling futures in the futures market, and options trading refers to investors buying and selling futures in the options market.
1.5 Relationship between options and futures
Options and futures are closely related. They are all financial derivatives, which can be used to hedge market risks and achieve investors' investment goals. In addition, there is an important connection between options and futures, that is, options can be used to invest in futures, and futures can be used to invest in options.
Options and futures are both important financial instruments in the financial market. There are obvious differences between them, but they are also closely related. Both options and futures can be used to hedge market risks and achieve investors' investment goals. Options can be used to invest in futures, and futures can be used to invest in options. Therefore, investors should reasonably choose options and futures according to their investment objectives and risk tolerance in order to obtain higher investment returns.