When trading options, the trend of the underlying securities has a very important impact on the option price. Options also fluctuate greatly. As the option itself is a natural lever, its advantage lies in its smallness and breadth as a buyer. Because each option contract is composed of its own value and time value. The value of time is simply understood as that long-term contracts are more expensive than short-term contracts.
The contract chosen by investors may be illiquid, the market transaction volume is insufficient, or it does not match the contract quotation, resulting in the position contract not being sold. Excessive trading is driven by investment income, but it often can't bring about the improvement of income level. Generally speaking, moderate investment has a good impact on income. Sometimes you don't want to stop loss if you have a loss. It is suggested that when investing, if you encounter losses, stop immediately and don't take any chances. The trading volume of the market will provide investors with a preliminary basis for selection. By observing the trading volume of different contracts, investors can eliminate contracts with relatively cold trading.
In the face of many complicated option contracts, we should choose carefully. Commercial banks, option operators, insurance institutions, trust companies, fund management companies, finance companies, qualified foreign institutional investors and other professional institutions and their branches. Securities investment funds, social security funds, pension funds, enterprise annuities, trust plans, asset management plans, banks and insurance wealth management products, and other funds or entrusted investment assets managed by the professional institutions listed in item 1. ?