5ETF option is a T+ two-way trading system, which provides investors with great flexibility and opportunities, but it also comes with a series of advantages and disadvantages. Below we will discuss the advantages and limitations of the T+ trading model.

Benefits:

1. Reducing trading risk

T+ trading allows investors to open and close positions at any time during trading hours, so it can respond to market changes in a timely manner and reduce trading risks. Even if there is an error in the transaction process, it can be adjusted flexibly to avoid causing great losses.

2. It is convenient to grasp trading opportunities

T+ trading mode enables investors to trade many times in the same day, so they can grasp trading opportunities brought by market fluctuations more flexibly. Even if the overall market changes little, intraday volatility can still provide multiple trading opportunities for short-term traders, and then accumulated profit.

3. Not affected by the next day's market

A significant advantage of T+ trading is that it ends on the same day and is not affected by the next day's market changes. This allows investors to deal with the trading situation of the day clearly and clearly after the end of the day, so that the funds can maintain a high degree of flexibility.

4. avoid the loss of time value

in option trading, time value is an important consideration. T+ trading mode helps to avoid the loss of time value caused by the passage of time. This means that investors can make more effective use of the time value of option contracts and reduce the risk of loss.

Disadvantages:

1. High transaction cost

Intra-day trading usually means an increase in transaction frequency, so the transaction cost will increase accordingly. For investors who frequently trade T+, the transaction cost may become a factor that cannot be ignored, affecting the final profit level.

2. High-risk

The high frequency and rapid change of T+ trading means that the trading risk is also relatively increased. If investors can't accurately grasp the market direction, they may bear a lot of losses in a short time. In addition, frequent trading also requires investors to keep a close eye on the market, which may easily lead to mental imbalance and operational errors.

3. Time pressure

T+ trading requires investors to make quick decisions in a short time, which brings time pressure to investors. If investors can't make correct decisions within a limited time, they may miss trading opportunities or fall into a loss situation.

Conclusion:

Although the T+ trading system of options has brought many advantages, it is obviously difficult for intraday band operation. In this trading mode, even if the direction is judged correctly, the profit is often limited; Once the judgment is wrong, it may cause greater losses. Especially for long-term positions, it is very important to choose the right contract to avoid excessive consumption of time value. Therefore, it is also necessary to give the contract a proper rest time.

during band operation, it is suggested to temporarily avoid the flat value contract with more time value, and favor the real value contract. In addition, in order to better grasp the changing law of option prices, it is also very important to set up stop-loss and take-profit in time.

especially when the volatility level is not high, the time value contained in the option will be relatively high. Especially after the option price skyrockets, with the adjustment or slowdown of the trend, the buyer's mood may be affected, while the seller's power will gradually accumulate.

therefore, the passage of time cannot be ignored when trading options. Even if you are very optimistic about the market prospect, you should remain calm and have plenty of opportunities to wait for buying again to ensure the healthy development of the transaction.