The transaction fees of both securities companies and futures companies are actually collected by the institutions themselves. If you are optimistic about a stock or a future and want to trade it, you must first understand their process before investing. Options trading is an investment method that only requires the ability to clearly judge the trend of the market. In addition to correctly judging the trend of the contract, options also need to seize the opportunity to invest in options. So is there a commission-free method for options trading? How much commission is generally required?

Source Baidu: Caishun Options

Is there a commission-free way to trade options? How much commission is generally required?

Commissions are charged according to different companies, and prices vary. Similarly, if it is the same company, the prices may be different in different places. The specifics still depend on the company's own regulations. In fact, if you open an account with a brokerage, the handling fee is generally less than five yuan. If you open an account with separate positions, the handling fee is generally around 7-10 yuan. Of course, if it is too high or too low, you must carefully choose a platform for trading.

How does option trading work?

An option is the right to buy or sell an underlying asset (such as stocks, stock indexes, futures, gold, foreign exchange, funds, etc.) at a specified price on or before expiration on a specific date in the future. For example, the underlying of the soybean meal futures options contract is the soybean meal futures contract, while the underlying of the 300ETF options contract is 300ETF. In the options trading market, if the market continues to trend upward, part of the lower execution price can be transferred to contract subscriptions with higher execution prices to obtain greater profits.

Under this market situation, investors need to pay attention to the allocation of funds. The market continues to decline. They should place the highest execution price in the option contract and move the lowest approved price to the contract sold at the execution price. Since you are new to options, you should consider selling an out-of-the-money call option on a stock you already own. This strategy is called a "covered call." Because you sold the call, you are obligated to sell the stock at the option strike price.