Currently, individuals can only open exchange-traded ETF options accounts. If you want to open 50 ETF options, you need to have more than 6 months of trading experience, and in the first 20 working days, average daily assets of 500,000, in order to avoid price risks In terms of the form of expression, buying options and futures trading are also quite different. The following is a popular science for everyone to pay attention to when opening an option account and trading? This article comes from: Caishun Options
1. Things to note when opening an option account and trading include the following:
1. Choose formal futures or securities and third-party options sub-positioning platforms to ensure the safety and legality of funds.
2. Understand the fees and handling charges for opening an option account, as well as the options trading rules and policies of the brokerage firm.
3. Provide true personal identity information and bank account information to ensure smooth opening.
4. Understand the risks and characteristics of options trading, and have certain investment knowledge and experience.
5. Before starting, you can first understand some basic knowledge and skills of option trading in order to make better investments.
6. The option handling fee is calculated based on the number of options. It is 7 yuan for opening a position, 7 yuan for closing a position, and 14 yuan for both sides.
7. Risk assessment: Investors need to conduct risk assessment to understand their risk tolerance and investment goals in order to choose option products that suit them.
2. What you need to pay attention to in options trading is the transaction rate and margin, and there is nothing else. Next, let’s take a look at the things to pay attention to in options trading:
1. Do not place an order to buy or sell based on the market price of options: the liquidity of options is generally less than the liquidity of the underlying stock. If you place an order to sell an option at the market price and encounter low liquidity, you are likely to suffer losses or reduced profits due to selling at a lower market price. If the order is placed to buy the option at the market price, when the underlying stock price rises, the option will be purchased at a high price, resulting in increased costs.
2. You cannot only look at technical indicators when buying and selling options: because option value contains time value, any technical indicator does not take into account time value and cannot take it into account. Therefore, changes in the value of time can distort the reliability of technical analysis. Technical analysis has no reference value for option investment, but it has certain reference value for the mid- and long-term trend analysis of the underlying stocks.
3. Be careful when buying out-of-value contracts: out-of-value contracts have no intrinsic value and only have time value. If you are not sure of any major changes in the future market trend, you still need to be cautious about buying out-of-value contracts.
4. Although its price is low and the leverage is high, it is relatively rare for out-of-value contracts to become real-value contracts, especially for deep out-of-value contracts, unless there is a black swan. Otherwise, once the option expires, its value will return to zero, and investors will lose all their premiums.
3. Things to note when trading options
1. Familiar with trading rules: Before trading options, investors need to be familiar with the trading rules of options, including regulations on trading hours, trading methods, transaction fees, etc., in order to better master trading skills and strategies.
2. Control risks: Options trading is highly risky. Investors need to control risks, formulate reasonable stop-loss and take-profit strategies, and avoid over-trading or blindly following the trend.
3. Understand market conditions: Investors need to understand market conditions, including price fluctuations of underlying assets, price trends of options, market sentiment and other information, in order to make correct investment decisions.
4. Stay calm: Options trading requires staying calm and rational, not being swayed by emotions, not blindly chasing ups and downs, and avoiding making wrong decisions.
5. Comply with laws and regulations: Investors need to abide by relevant national laws, regulations and policies and are not allowed to conduct illegal transactions or violate regulations.
In short, options account opening and trading require investors to pay attention to many aspects, including choosing formal channels, understanding account opening conditions and requirements, providing real information, conducting risk assessments, becoming familiar with trading rules, controlling risks, understanding market conditions, staying calm and complying with Laws and regulations, etc.
Only with sufficient preparation and precautions can you better open an option account and trade.