Other options, such as binary options, are relatively informal and their supervision is unknown.
After more than one year's simulation test, SSE 50ETF option was listed on Shanghai Stock Exchange from 2065438 to February 9, 2005. This not only announces the arrival of China option era, but also means that China has a full set of mainstream financial derivatives.
In futures speculation, options have the function of replacing future positions and copying future positions, and also have the function of resolving the risk of extreme price fluctuations.
In the function of option substitution, buying call options or selling put options can replace futures bulls, and buying put options and selling call options can replace futures shorts. In the option copying function, buying call options and selling put options can copy futures bulls, and buying put options and selling call options can copy futures shorts.
Extended data:
Option performance has the following three situations:
1. Both buyers and sellers can perform the contract by hedging. ?
2. The buyer can also perform the contract by converting the option into a futures contract (obtaining the corresponding future positions at the execution price level stipulated in the option contract).
3. Any expired unused options will automatically become invalid. If the option is virtual, the option buyer will not exercise the option before the option expires. In this way, the option buyer loses the premium paid at most.
Option premium: As mentioned above, option premium is the price of buying or selling option contracts. For the option buyer, in exchange for giving the buyer some rights, he must pay royalties to the option seller; For the seller of options, he sells options and undertakes to fulfill the obligations of option contracts, for which he receives a royalty as a reward.
Baidu Encyclopedia-Options