1 thought on “How to deal with options, is it the same as ordinary products?”
Carrie
In the global option market, option delivery methods are divided into two categories: cash delivery and physical delivery. Objective cash delivery, as the name suggests, refers to the option contract that matches the out of date, completes the contract by cash payment, and uses the settlement settlement price to calculate the cutting profit and loss.
The example: An investor holds the Shanghai -Shenzhen 300 -to -Shenzhen 300 -viewing option with a monthly delivery price of 2300 points. Then investors will harvest cash (2302-2300)*100 yuan = 200 yuan, and deduct the payment fees for payment of delivery.
The considering protection of investors' rights and promoting rational operations in the market, overseas markets generally adopt a system of automatic exercise of customers on behalf of customers. Investors should consider that each optional broker's handling fee is different, and may cause automatic exercise losses due to the minimal harvest of the handling fee. In this regard, the exchange can set up a system for customers to abandon the application application.
If options' delivery refers to the option contract that matches the out of date. The option seller will deliver the subject matter to the options buyer by the exercise price, and complete the contract by the actual subject matter to complete the contract. The physical delivery of options is mostly used for individual stock options. When the options are performed, the seller of the options needs to deliver the stock position to the buyer of the option. The stock index options need to deliver a basket of stocks, which is complicated and cost -effective, with low feasibility.
The research on the most active major stock index options of global transactions found that the top eight stock index option products in the global transaction volume in 2011 have selected cash delivery methods without exception, and these eight major stock indexes The market share of options products has reached 95%. The main reason for the use of cash delivery in major overseas stock index options is that for the stock index option products based on the stock index, the cost of cash delivery is low, the operation is convenient and efficient, which is widely accepted by the market and investors.
This can effectively avoid transaction risks. For traders who hold options, trading risks need to pay special attention. The sharp risk of it is a trading risk that domestic investors are unfamiliar but cannot be ignored. The sharp risk refers to the risk that the flat value option holder is near the execution price of the target price near the expiration, and it will be difficult to predict whether the options will be executed by the risk. It is not difficult to see from this case that cash delivery is an effective way to avoid sharp methods.
In the global option market, option delivery methods are divided into two categories: cash delivery and physical delivery. Objective cash delivery, as the name suggests, refers to the option contract that matches the out of date, completes the contract by cash payment, and uses the settlement settlement price to calculate the cutting profit and loss.
The example: An investor holds the Shanghai -Shenzhen 300 -to -Shenzhen 300 -viewing option with a monthly delivery price of 2300 points. Then investors will harvest cash (2302-2300)*100 yuan = 200 yuan, and deduct the payment fees for payment of delivery.
The considering protection of investors' rights and promoting rational operations in the market, overseas markets generally adopt a system of automatic exercise of customers on behalf of customers. Investors should consider that each optional broker's handling fee is different, and may cause automatic exercise losses due to the minimal harvest of the handling fee. In this regard, the exchange can set up a system for customers to abandon the application application.
If options' delivery refers to the option contract that matches the out of date. The option seller will deliver the subject matter to the options buyer by the exercise price, and complete the contract by the actual subject matter to complete the contract. The physical delivery of options is mostly used for individual stock options. When the options are performed, the seller of the options needs to deliver the stock position to the buyer of the option. The stock index options need to deliver a basket of stocks, which is complicated and cost -effective, with low feasibility.
The research on the most active major stock index options of global transactions found that the top eight stock index option products in the global transaction volume in 2011 have selected cash delivery methods without exception, and these eight major stock indexes The market share of options products has reached 95%. The main reason for the use of cash delivery in major overseas stock index options is that for the stock index option products based on the stock index, the cost of cash delivery is low, the operation is convenient and efficient, which is widely accepted by the market and investors.
This can effectively avoid transaction risks. For traders who hold options, trading risks need to pay special attention. The sharp risk of it is a trading risk that domestic investors are unfamiliar but cannot be ignored. The sharp risk refers to the risk that the flat value option holder is near the execution price of the target price near the expiration, and it will be difficult to predict whether the options will be executed by the risk. It is not difficult to see from this case that cash delivery is an effective way to avoid sharp methods.