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Terminology explanation of futures options
Futures option is another futures revolution in 1980s after financial futures in 1970s. 1984 10, the Chicago Board of Trade successfully applied the option trading method to the trading of government long-term treasury bonds futures contracts for the first time, and futures options came into being. Compared with commodity futures, option trading provides futures traders with tools to avoid risks. At present, most futures trading products in the international futures market have launched option trading.

The right to buy or sell a certain number of futures contracts at a certain price at a certain time in the future, futures option, is an investment variety of futures. Option is a way to judge the future market, and your loss is limited.

For example, if you think the current market will go up, you can buy a call option. The conclusion is that if the market goes up, your income is infinite; If the market falls, your loss is only your stock. Similarly, when the market is bearish, you buy a put option and come to the conclusion that if the market falls, the income is infinite; When the market goes up, only the rights and interests are lost. If the market is considered to be volatile, you can sell options, your highest return is equity, and your biggest loss is infinite.