Although there are not as many futures and options as stock investors, they are also one of the indispensable tools in financial investment. However, if investors are confused about options and futures, this encyclopedia knowledge must be read.
!So are options futures?
What do futures options mean?
Are options futures?
Futures and options are not the same thing.
1: Concept: A futures contract is a standardized contract formulated by a futures exchange that stipulates the delivery of a certain amount of subject matter at a specific time and place in the future.
Futures contracts can be divided into commodity futures contracts, financial futures contracts and other futures contracts depending on the subject matter of the contract.
On the surface, trading options and futures can both buy or sell the underlying asset at a certain time in the future. However, the two have huge differences in their essential attributes.
Options contracts represent the right of the buyer to buy or sell the underlying asset at an agreed price on the expiration date, while futures are a trading method in which money is paid first and then delivered.
What do futures options mean?
A futures option contract represents a futures contract to buy or sell a certain amount of a specific commodity or asset at an agreed price on or before the option expiration date.
The basis of futures options is a commodity futures contract. When a futures option contract is implemented, what is required to be traded is not the commodity represented by the futures contract, but the futures contract itself.
Compared with commodity futures, which provide spot traders with a tool to avoid risks, futures options trading provides futures traders with a tool to avoid risks. Currently, most futures trading varieties in the international futures market have introduced options trading.
Source Baidu: Caishun Options ~ There are many financial management methods on the market. In addition to popular financial management methods such as bank financial management and funds, investors with certain investment experience and risk tolerance will also be exposed to options, futures and other investment methods.
How to trade futures options?
Futures options are divided into call (call) options and put (put) options. Investors can buy to open a position, sell to open a position, and reverse the position according to their own needs.