Broadly speaking, the futures market (future)
Market) includes futures exchanges, clearing houses or settlement companies, brokerage companies and futures traders; The narrow sense of futures market only refers to futures exchanges. The futures exchange is the place to buy and sell futures contracts and the core of the futures market. A mature futures market is equivalent to a completely competitive market to a certain extent, and it is the most ideal market form in economics. Therefore, the futures market is considered to be a higher-level market organization form and an inevitable product of the development of the market economy to a certain stage. The futures market is a place where both parties do not deliver immediately after reaching an agreement or transaction, but deliver in a certain period of time in the future.
Option market: options in English.
Market; select
Exchange. The market where options contracts are traded is also: Options Exchange.
Exchange). Option trading refers to the right to buy a specific commodity at an agreed price within a specific time. The most common options transactions are foreign exchange, indexes and commodity options contracts. Option is an important concept in modern finance, which has very important application value in practice. Option market is an important part of modern financial market.
Option trading is a kind of right trading. What the buyer buys is not a physical object, but a right, which enables him to buy or sell a certain amount of certain securities from the seller of options at any time at a predetermined price (generally called the agreed price) within a certain period of time, regardless of the price of the securities at that time. This "fixed term", "agreed price" and the quantity and types of securities to be bought and sold are all agreed in advance in the option contract. During the validity of the option contract, the buyer can exercise or resell this right. If the contract expires after the specified time limit, the buyer's option will also be invalid. Options are divided into call options and put options. After buying a call option, the buyer can buy a certain security of a predetermined amount from the seller of the option at an agreed price at any time during the validity period of the option; When buying a put option, the buyer can sell a security to the seller at an agreed price at any time during the validity of the option. There are uniform standards for option trading contracts, and there are uniform provisions for transaction amount, term and agreed price. This has created convenient conditions for the development of the option market. The term is generally 9 months, the agreed price is close to or equal to the price of buying and selling securities, and the option fee is about 30% of the transaction amount. With the development of financial market and diversification of investment, the object of option trading has gradually developed from initial stocks to products such as gold, treasury bonds and large negotiable certificates of deposit.
Options trading methods include: (1) hedging options; (2) Differential options; (3) Set options, set options. Option trading is different from spot trading. After the spot transaction is completed, the price of the traded securities has nothing to do with the seller, and the loss or gain caused by the price change is the buyer's business. Option trading establishes the relationship of rights and obligations between buyers and sellers, that is, the rights are enjoyed by the buyer alone and the obligations are borne by the seller alone. Option trading gives the buyer a unilateral option. During the validity period of the option trading contract, when the price fluctuation of the securities is favorable to the buyer, the buyer can buy options or sell options. The contract is the content of the call option, and the seller must buy the securities at the contract price. Option trading before the expiration of the contract, the buyer can exercise the option at any time to achieve delivery, and the delivery date of futures trading is fixed; The rights and obligations of the option trading contract belong to the buyer and the seller, and are only binding on the seller, while the rights and obligations of the buyer and the seller of the futures trading contract are equivalent, and the contract is binding on both buyers and sellers. On the delivery date of futures trading, both parties must trade at the price stipulated in the contract.
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