3 thoughts on “What is option?”

  1. Options refer to a contract, which is derived from the US and European markets in the late eighteenth century. The contract gives the holder at a certain date or before that day.
    The expansion data
    C financial products (Financial Procts) refer to various carriers of the financial process, which include currency, gold, foreign exchange, and securities. That is to say, these financial products are the targets of buying and selling in the financial market. The supply and demand parties form financial products prices through market competition principles, such as interest rates or yields, and finally completed transactions to achieve the purpose of integrating funds. Such as stocks, futures, options, insurance policies, etc. are financial assets, also called financial instruments, also known as securities ().
    It finance and its products are neither falling from the sky nor inherent. Financial, financial markets, and financial products are like a tree species. In the appropriate soil and time and space, they gradually grow up with the development of human society.
    If financial products are the products of financial society; financial society has gradually developed on the basis of agricultural society and industrial society; financial products are derived from agricultural products and industrial products.
    The financial and its market and products should not be virtual or virtual. Financial products should evolve from physical assets. In fact, most financial products have evolved from physical assets. Taking stocks as an example, Great Wall Co., Ltd. has transformed its 10 million physical assets through asset securitization into a joint -stock enterprise with 1,000 shares through asset securities. In this way, Great Wall has financial assets or financial products. In the future, the company and financial institutions can further evolve the stock into stock options and futures.
    The evolution of finance and its products is like the leaves from the branches, the branches are from the trunk, and the trunk comes from the root of the tree. They are intertwined, connected, inseparable, and influence. In fact, everything in finance is exactly the same as the tree, because the tree is the enlightenment of the law of heaven and earth, and the financial tree is the system integration of the financial law. Finance is the tree!
    , financial development is deducted in one ring, and step by step, so financial products can be divided into basic securities such as stocks, bonds, etc., and derivative (advanced) securities such as futures and options. Second, according to ownership, according to ownership Attributes, financial products can be divided into property rights products such as stocks, options, shares, etc., and creditor products such as Treasury vouchers and bank credit products.

  2. The period is the meaning of the future, and the power is the meaning of rights, so the word options together represent the future rights.
    The advantages of options:
    1. Infinite income
    The option fees (rights) can be paid to hold 10-20 times the market value of stocks to dispose of income rights within a certain period of time limit The hotspot of bull stocks comes, and no longer miss the opportunity to be small.
    2, limited losses
    The biggest risk for investors is to carry orders without loss. The result is nothing more than two types, one is to turn losses into profit, and the other is to get in a state of bankruptcy. The biggest retracement lock, carrying a single loss has nothing to do with investors. If the stock falls 50%or more, it will only lose about 10%of option fees.
    If option mainland KG14133
    3, flexible buying and selling
    buy at any time to enter the market. When the profit reaches the target level , Fall first, then rise or fall, then the buyer will decide to close the position. You can choose a large space.
    4. The transaction strategy is two -way
    If investors can purchase different proportions to combine different individual stocks to achieve the purpose of diversified risk balance income. If you are vacant stocks, you can first recognize the cleaning option for profit or hedging risk.

  3. It is a contract that originated from the European and American markets at the end of the eighteenth century. As the name implies, the "period" is the future, and "power" is the right. Options give the holder the right to purchase or sell the underlying assets at a fixed price at any time before a specific date or specific date.

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