Can individual investors participate in OTC stock options?

Mondo Finance Updated on 2024-02-02

Individual investors can participate in OTC options trading by inquiring from institutions, and they can open an account**OTC options trading is institutional investors, mainly various investment institutions, of which institutional investors are divided into professional investors and ordinary institutional investors.

Classification of professional investors

Professional Category 1 Investors:

Financial institutions established with the approval of the relevant financial regulatory authorities include ** companies, ** companies, ** management companies and their subsidiaries, commercial banks, insurance companies, trust companies, financial companies, etc.;

**Company subsidiary**Company subsidiary, private equity ** manager filed or registered by industry association.

Option sauce collated and released.

Professional Category II investors meet the following conditions at the same time:

The net assets at the end of the last 1 year are not less than 20 million.

Financial assets at the end of the last 1 year are not less than 10 million.

More than 2 years of investment experience, foreign exchange, etc.

Product Professional Investors:

The investment scope of the financial product contract filed with the China Investment Industry Association shall include the over-the-counter derivatives business in the product specification.

The product manager is not on the blacklist published by the China Investment Industry Association.

If you are a legal person, the following conditions must be met to participate in OTC options trading:

Net assets: net assets at the end of the most recent year shall not be less than RMB 50 million;

Investment experience: more than three years of investment experience, foreign exchange and other related investment experience;

Financial assets: financial assets shall not be less than RMB 20 million.

At the same time, the premise for a legal person to participate in OTC options trading must be a professional institutional investor.

Which investors are suitable for OTC options?

1.Possess strong psychological capacity:

*The options market is volatile, and investors need to have enough psychological tolerance, be able to calmly deal with various situations, and seize the opportunity to make profits.

2.Level-headed, decisive decision-making:

Investors who are suitable for ** options should be able to remain calm in the face of market volatility and be able to make the right decisions decisively. Investors who are excited, indecisive, or rely on the advice of others may not perform well in options trading.

3.Have sufficient idle funds:

*Options trading requires sufficient idle capital support, and tight funds will increase the pressure of investors and easily lead to wrong decision-making.

4.Keep a normal mind:

Although options can provide some level of protection, they do not equate to zero risk. Investors should keep a normal mind, recognize that there are risks in investment, arrange funds reasonably, and do a good job in risk management. Options

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