The risks of option buyers and option sellers are very different, because in the option market, buyers and players have always attracted many investors with the view of unlimited returns and limited risks. On the contrary, the seller is the opposite.

Buyer's risk: loss of royalties

In fact, the biggest risk for option buyers is the loss of royalties. Because the buyer itself adopts the commission system, its trading rule is that even if there is a loss, it is only a limited commission. However, the benefits can be unlimited. For example, in the 50etf option market, the contract price rises indefinitely.

Seller's risk: margin system

The so-called deposit system, as long as you understand, is similar. That is, once the market fluctuates, sellers and players need to keep their positions by constantly adding margin, and once they fail to add in time or can't, once they fail to meet the minimum margin standard, they will be forced to close their positions by the system, which is the risk of short positions.

Difference between option buyer and seller

1, the seller's cost is higher.

This is easy to understand. Option buyers are highly leveraged in the market. As long as you look at the right direction, you will have the opportunity to earn several times with a small amount of royalties. The seller, on the other hand, is its counterparty and needs to bear the loss risk of several times the income, and the biggest income is also a small amount of patent fees from the buyer.

2. The successful rate of buyers is low.

Because of the time value, in fact, the winning rate of the seller is much higher than that of the buyer's player, which can be regarded as making up for the disadvantage of high risk of the seller's player.