The most critical question for OTC** options is whether and how they are exercised at expiration, which directly affects the final profit. For OTC** options, there are generally the following methods of exercising:
1.Cash Exercise:
The investor pays the exercise fees, taxes and fees to the **merchant designated by the company, and the **merchant purchases the option by exercising**. Investors hold **as a long-term investment in the company and at the right time to make a profit.
Option sauce collated and released.
2.Cashless Exercise:
Investors do not need to pay the exercise fee in cash or by cheque, and the merchant pays the exercise fee in part. Investors can choose from the following ways***
Market Order: At the current market price***
Daily Limit Order: If the stock price reaches or exceeds the specified ** during the day, the trade will be executed, otherwise the order will be automatically cancelled.
Valid-til-cancelled order: If the stock price reaches or exceeds the specified ** within the specified time period, the transaction will be executed, otherwise the order will be automatically cancelled.
3.Cashless exercise and**:
The investor immediately exercises some or all of the exercisable options to obtain the profit from the difference between the strike price and the market price.
Investors can flexibly choose different exercise methods according to their own circumstances. OTC options contracts are composed of ** or index, term, premium, capital size, exercise method, etc., and investors can customize the contract according to their own needs.
Although the business rules of OTC ** options launched by various brokerages are different, investors should choose the most suitable brokerage for their needs to cooperate, and at the same time have a careful understanding of the rules of different brokerages. Options