There are two channels for opening an option account, securities and futures, and three-party option diversification platforms. Only by opening an options account trading permission can you trade options. Many investors who are new to options do not know how to choose an option diversification platform. The following is How do you choose an options account opening platform and consider handling fees and margin issues? This article comes from: Option Sauce
1. The method of selecting an option account opening platform is as follows:
1. Look at the platform operation qualifications .
When contacting a platform, be sure to first check whether the main operating company of the platform is formal and whether it has securities investment business, securities entrustment, securities consulting services, etc.
You can check whether the company has disputes in the industrial and commercial registration system. Generally, an option sub-margin platform has been established for a long time, indicating that the platform's technology, management and problem-solving efficiency are relatively mature and effective.
2. Check the platform’s cooperative brokers .
Generally, a formal option sub-margin platform will sign a "Risk Disclosure Statement" with the securities company, allowing you to sign an account opening agreement on the premise that you know that option investment is risky.
3. Check whether the platform is a real transaction . After placing orders and canceling orders, you can view real-time data through mainstream brokerage market software (such as Huashun, Tongdaxin, Oriental Fortune, etc.).
If the funds of the sub-margin platform are actually admitted, then the user's order and order cancellation data will definitely enter the Shanghai Stock Exchange and be synchronized to various market software.
2. What are the options handling fees and margin issues?
1. Option fees:
Options trading fees refer to the fees charged by buyers and sellers to buyers and sellers in option transactions. It is charged according to the transaction volume and is divided into two methods: fixed fee and proportional fee based on the transaction amount.
Option handling fees are calculated based on the number of options. Opening a position is 7 yuan, closing a position is 7 yuan, buying and selling is 14 yuan. The option transaction fee is generally around 7 yuan per piece by default, and can be adjusted according to your own operating costs. Develop options trading fee discounts based on actual conditions.
Fixed handling fee means that the handling fee paid by investors is fixed regardless of the contract transaction amount. This method is suitable for contracts with small transaction amounts, because the handling fee amount is fixed, which is relatively more suitable for small-amount transactions. Affordable.
For large transactions, the fixed handling fee may be relatively high, so investors need to pay attention to the handling fee collection method when choosing an options trading platform to avoid unnecessary losses.
2. Option margin:
Option margin is a part of the funds that investors need to pay when trading options to bear contract risks. The purpose of option margin is to ensure that investors have sufficient funds to perform the contract and to avoid market instability caused by the investor's inability to perform the contract.
Option margin simply means leverage, which means you can buy a larger contract with a small amount of money. In options trading, the buyer pays a premium to the seller. The buyer obtains the right but not the obligation. Therefore, in addition to the premium, the buyer does not need to pay a deposit.
For the seller, after receiving the buyer's premium, he only has obligations but no rights. Therefore, he needs to pay a deposit to ensure that the option contract will be fulfilled when the buyer executes the option.