2. Chinese name: ordinary bonds/conventional bonds

3. "The most common bond products without additional clauses pay interest at a fixed interest rate, return the principal at face value at maturity, and have a stable cash return.

Supplementary information:

What are the common options?

1. Vanilla option is the "simplest" option, which is usually divided into European option (which can only be exercised on the expiration date) and American option (which can be exercised on any trading day before the expiration date).

2. In ice cream, foreign countries think vanilla flavor is the purest and most primitive flavor, so it is used to name the option because the structure of this option is the most single and common, and no special terms are embedded. For example, the 50ETF option currently listed in our country is one of the vanilla options. In other words, ordinary option trading is an ordinary put option. Call option is the right to buy a certain amount of currency at the agreed execution price on or before a specific date, while put option is the right to sell a certain amount of currency at the agreed execution price on or before a specific date. In the foreign exchange market, options can be traded manually (futures) or over-the-counter (retail spot foreign exchange).

3. Ordinary options can be decided by traders whether to use them as directional bets or hedge existing positions. Option can be used as a low-cost betting method, and if properly designed, it can also reduce the risk of loss. The word "option" essentially means that the buyer has the right, but has no obligation to complete a transaction at a specific time and price, but this may be misleading to some extent. If you are an option seller (obligee), you can't choose to withdraw from the market. If the buyer's option is profitable, you must deliver it with him. If you are an option buyer, your biggest loss will not exceed the equity premium you paid. If you are an option seller, theoretically, your loss is infinite. In fact, the foreign exchange risk is not unlimited, because money will not be delisted like corporate stocks, but the related losses may be very large, especially when you use leverage.

Extended data:

Bonds are securities issued by issuers to raise funds. They pay a certain percentage of interest at the agreed time and repay the principal at maturity. Its essence is the proof of debt, which has legal effect. Issuers are usually governments, enterprises, banks, etc. Because government bonds are guaranteed by government taxes, the risks are minimal, but the benefits are minimal. Corporate bonds are the most risky and the returns are correspondingly high. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.