Futures and options:
Option refers to a contract, the contract gives the holder the right to purchase or sell an asset at any time before a certain date or that date at a fixed price.
Futures are standardized contracts, giving participants a certain point in the future a good time at the agreed price to buy or sell something obligations.
In contrast, the option is to give the buyer the right but not the obligation, in essence, the distinction between options and futures is the key to differences in rights and obligations. Look further, this distinction also reflects the rights and obligations of participants and the buyer the right to difference and unequal risk seller. In options, the buyer at the point in time under the future (assuming that the European option) or choose not exercise the right to strike if the buyer select the seller must fulfill the contract, that is, the buyer of the rights corresponding to the obligations of the seller. In this case, the option seller and the buyer suffered unequal benefits and risks, the biggest risk is that the buyer's premium loss, the loss of the seller may be infinite but the biggest benefit is only earned premium. Futures and options provide liquidity to each other can be mutually risk hedging tool, jointly improve the market risk management systems.
Stock index options and ETF options:
Stock index options subject matter is stock index, due cash settlement based index point; ETF ETF options subject matter is, when the object is due for delivery ETF stock.
ETF Options (ETF fund is a type that can be traded on an exchange), refers to the right to pay a certain amount of gold, gained a certain time in the future, to buy or sell a specific price index funds right. After expiration may choose to exercise this right, access to post gains; you can also choose not to exercise this right, the loss of the premium.
There are four options trading direction, options are divided into call options and put options. According to different needs, buying call options, buy put options or sell call options and sell put option.
ETF is an index of the transaction and configuration tools. That ETF exchange-traded index funds, ETF index funds on behalf of the ownership of a basket of stocks, index funds means like a stock on a stock exchange transaction, the transaction prices, the fund shares is consistent with the trend of the index being tracked. Therefore, investors traded an ETF, the equivalent of trading the index it tracks, it can be made consistent with the index returns.
Domestic Options:
If the option exercise period can be divided according to the American option and European option. Currently listed on the main European options 50ETF copper options and options. American options options include soybean meal, sugar option, the option of cotton, corn options options rubber.
In general, if the subject matter is taken to the monthly change of the main varieties of contract, it adopted a European option, if the subject matter is taken to the main varieties of fixed contract month, usually take American options.
February 9, 2015, China's first listed on the Shanghai Stock Exchange ETF options varieties 50ETF options.
November 8, 2019, the Commission officially launched the expansion of stock index options experimental work , according to procedures approved by the Shanghai Stock Exchange and the Shenzhen Stock Exchange listed on the Shanghai and Shenzhen 300 ETF options, gold listed on the Shanghai and Shenzhen 300 stock index options. Respectively in the Shanghai Stock Exchange-listed Chinese Tai Borui of 300ETF and in the Shenzhen Stock Exchange-listed Harvest Fund 300ETF. The ever-changing combination of options, in a variety of market can build suitable strategies to achieve enhanced revenue, arbitrage, risk transfer and other transaction purposes. The use of options, investors can achieve more sophisticated investment decisions, a more precise risk management. The option of increasing its capacity in order to meet the needs of the market is booming, and improve multi-level capital market, improve the functioning of markets, to attract long-term funds into the market, enhance market stability comfortable.