Shenzhen Lemai's virtual currency
Hello, option, also known as "option", refers to the right of its holder to purchase or sell a certain number of basic instruments at the price agreed by both parties within a specified period of time. Option trading is the sale of this option
the advantages of options:
as a kind of financial derivatives, options can not only enrich investors' investment strategies and risk management means, realize diversified transactions, but also balance market supply and demand, improve market efficiency, and have the function of value discovery. The following are the advantages of some options trading:
providing insurance for assets when the investor's current position in the stock is profitable, but he is not optimistic about the future market expectation, and wants to avoid the risk brought by the downward stock price, he can choose to buy put option as insurance. Suppose that the investor's current position in the stock is 10 yuan per share and the call exercise price is 12 yuan. When the option matures, if the stock price falls, the investor can choose to exercise the right to sell the stock at the price of 12 yuan; If the stock price rises, investors can continue to enjoy the benefits of the rising stock price
directionality enhances revenue investors can generate leverage through option trading according to the expectation of future price trend. Investors who expect the price to rise will buy call options, while investors who expect the price to fall will buy put options. By increasing leverage to carry out long or short directional trading, we can enhance the income, but also enhance the risk
form a flexible investment strategy . According to various market conditions, investors can flexibly combine call options and put options with different exercise prices or e dates to form a portfolio with different risks and returns< br />