What is the difference between 300 ETF options and other options?

Mondo Finance Updated on 2024-01-29

The CSI 300 ETF options on the SSE and SZSE are based on their respective CSI 300 ETF (510300.).sh and 159919SZ), while CFFEX's CSI 300 stock index options are based on the CSI 300 Index. The underlying of all three options tracks the CSI 300 Index, with the former tracking indirectly through ETFs and the latter tracking the index directly. Options

1. There are many types of contracts for CSI 300 ETF options, and there is only one ** index option in CSI 300 stock index options.

2. The trading scale of CSI 300 ETF options is not very large, and the amount of investment funds is relatively small. CSI 300 stock index options trading scale is large, investment cost is relatively high, suitable for institutional investors.

3. Trading instructions are different, CSI 300 ETF options use limit price declaration, and CSI 300 stock index options use limit trading orders.

Investors choose one of the CSI 300 ETF options that they are optimistic about, enter the opening position, that is, the operation of **, after submitting the order, they still need to keep an eye on the market, because the CSI 300 ETF options are T+0 transactions, investors can close positions, increase positions, make up positions, open positions and other operations, and then investors find a suitable time to sell or stop loss opportunities, and carry out platform (sell) operations. After selling, the trading process ends smoothly.

Although deep out-of-the-money options have low premiums and high leverage, investors will face losses if they misjudge the direction and go in the opposite direction. So be cautious about buying deep out-of-the-money options. Especially for novice investors, it is generally not recommended to buy.

Because the buyer's profit ceiling is relatively high, it is different from the seller's, but at the same time, the loss is limited but its win rate is relatively low. In terms of specific **, the buyer needs to grasp the volatility, and the non-fluctuating ** is also a risk for it, because this will waste the time value of the option;Sellers are better off avoiding volatility so they can earn time-value with confidence.

Novice friends will choose the former when they choose to be an option buyer and seller. This is actually true, after all, in the case of such an unfamiliar market, it is definitely safer to choose a risk index with a lower index.

But the misunderstanding here refers to the fact that everyone should not look at the market with such inertial thinking in future trading. Because in fact, 300 ETF options are not necessarily better buyers than sellers. It is only less risky, but there are other disadvantages of this disadvantage over the seller, which is a point that everyone should understand in the process of slowly making orders.

In addition, it is said that 300 ETF options are not 50w, but in fact, they are not, and they can also be operated through a third-party trading platform (similar to options) with 0 threshold!

1. High liquidity: 50ETF options have a high trading volume and open interest rate, making intraday trading more convenient. The large number of trading participants provides more buying and selling opportunities and competitors for day traders, increasing the flexibility of trading.

2. High volatility: One of the characteristics of stock index options is high volatility, especially in the short term. 50ETF options** are highly volatile, providing more trading opportunities and potential gains. Day traders can take advantage of this volatility and make a profit by buying and selling.

3. Low transaction costs: Compared with direct trading ETFs, 50ETF options trading requires less initial capital, which lowers the investment threshold. Day traders can participate in the market movement by buying or selling call or put options, and exit in time to make profits when it fluctuates.

If it helps you, we wish you a happy life.

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