How are options traded?

The so-called option, the term represents the future, and the right represents the right. An option is the right to trade assets at an agreed price in the future. Floor option has six elements: subject matter, agreed price, exercise time, royalty, right type and transaction subject. Retail investors should pay attention to several matters when entering options.

Finance first: the cheaper the option, the greater the risk of zero value: the limited contract looks as low as tens of dollars, but in fact its price is likely to become zero in a few days. Second: Pay attention to the expiration date: which month to buy the contract: the expiration date is Wednesday in the fourth week of the month where the contract is located. If the expiration date has not been exercised or closed, the option will be invalid. Third, we must pay attention to the position: because the options fluctuate greatly, the position should not be too large. Don't buy dozens of real contracts in Stud easily. If the market is unfavorable, the loss will be very large.

If you want to do options trading, investors must first open an account on the trading platform, which is the first step of any kind of trading, but investors must meet the requirements of assets, experience, ability, risk tolerance and no bad record in the bank. Secondly, investors should know the contract varieties of options trading, including call options and put options, the unit of measurement is Zhang, and the minimum change price is 0.000 1 yuan. In addition, investors should also understand the basic knowledge of option contract code, transaction code, contract abbreviation and how option leverage changes with the comparison between the exercise price and the market price of the subject matter.

It is not a simple matter to make good options. Investors need to seize every investment opportunity and sum up experience in order to do the best option trading.