This article will introduce the options account opening process, trading time and rules with clear and easy-to-understand explanations, including the definition of options, options trading time, options trading rules and the risks of option trading. The conclusion of this article is that the timing and rules of options trading are very important, trading rules should be followed, and risks should be paid attention to. Source of this article: Option Sauce
The account opening process for a brokerage to open an option account is different from that of the option splitting platform. The general situation is as follows:
1. A securities firm opens an option account
1. Investors need to open an account at a qualified securities or futures brokerage firm and obtain a trading code
2. Investors need to apply to securities or futures to open options trading permission;
3. Investors need to meet the conditions for opening securities or futures;
4. Investors need to take the options knowledge test on securities or futures and meet the passing standards;
5. Investors need to sign a risk disclosure letter and understand the risks of options trading;
6. Investors need to understand the terms and rules of option contracts and be familiar with options trading strategies;
7. Investors need to understand the leverage effect and risk control measures of options trading;
8. Investors need to conduct simulated trading and real trading in accordance with the requirements of securities or futures.
2. Account opening process of options sub-margin platform
1. Select an options trading platform;
2. Register an options trading account;
3. Deposit funds;
4. Learn options trading knowledge.
5. There is no way to open SSE 50 ETF options-GEM ETF options-Kechuang 50 ETF options-stock index options-commodity options!
3. Detailed explanation of options trading hours and rules is clear and easy to understand
Option, also called option, means that the buyer of the option has the right to buy or sell a certain amount of a certain commodity or financial index at a predetermined price within an agreed period.
1. The rights and obligations of buyers and sellers are different. After paying the royalty, the buyer has rights but not obligations; the seller has no rights but obligations after receiving the royalty.
2. The profit and risk characteristics of buyers and sellers are different. The buyer's biggest loss is the royalty, and the potential gains are huge; the seller's biggest profit is the royalty, and the potential losses are huge.
3. Buyers and sellers have different requirements for deposit payment. The buyer is not required to pay a deposit, but the seller must pay a deposit as security for performance.
4. The buyer and seller of options have different economic functions. Buying options can hedge the risk of adverse price fluctuations of the underlying asset while retaining profit margins for favorable fluctuations; selling options can only obtain franchise income and cannot hedge the price risk of the underlying asset.
4. Options trading hours and options trading rules
1. Options trading hours and rules: Options trading hours are 9:30-11:30 and 13:00-14:57 on the trading day, and the other 14:57-15:00 is the bidding stage.
Options do not trade on weekends. The contract unit of option trading is 10,000 units, the reporting unit is an integer, and the exercise method is expiry exercise. In addition, the trading expiration month of the option can be set to the month at the end of the current month, the next month, or the two quarters of the subsequent period.
2. An option refers to a contract, which first originated in the securities markets of the United States and Europe. The holder of the option can sell it at a fixed market price at a certain time point or before. Options are essentially an asset holding. The holder of an option only enjoys the rights and does not bear the obligations of the option.
The subject matter of options is the asset used to buy or sell, including stocks, bonds, commodity futures, currencies, stock indexes, etc. Since options are derived from many objects, they are also derivatives of financial products.
3. Options are divided into two basic types: call options and put options. Options Trading Rules Under a call option, the option holder has the right to buy the underlying security at a certain price at a certain time. A put option gives the option holder the right to sell the underlying security at a certain time and at a certain price, subject to the options trading rules.
4. The expiration months of options contracts on the Shanghai and Shenzhen Stock Exchanges are the current month, the next month and the last two quarter months (next quarter month and every other quarter month), a total of 4 months, and are listed and traded at the same time.
The quarter months refer to March, June, September and December. The expiration date is the date when the contract expires and is the last date on which the option buyer can exercise their rights.
The contract automatically expires, the option buyer no longer has rights, and the option seller no longer bears obligations.
The expiration date of options contracts on the Shanghai and Shenzhen Stock Exchanges is also the last trading day, which is the fourth Wednesday of each contract expiration month (extended if it is a legal holiday), unless otherwise specified. The delivery date is the trading day next to the expiration date.
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