Compare options and futures during long holidays

Mondo Finance Updated on 2024-02-22

During the long holiday, the comparison between the position option and ** is mainly in the following aspects:

1.Risk control: The risk of holding options is relatively low, because the option buyer only needs to pay a certain premium, does not need to pay margin, and can choose to exercise or not to exercise, and the initiative is in his own hands. The ** position needs to pay the corresponding margin, and during the long holiday, the exchange adjusts the margin ratio is relatively high, the capital occupation is large, and the corresponding risk is also higher, once the market volatility is large, it may face relatively large losses.

2.Return-to-risk ratio: The return-to-risk ratio of position options is relatively high, because the option has a higher return, but the risk is relatively low, and the combination strategy can achieve low risk and high return. The return-risk ratio is relatively low, because the risk-to-return ratio is not very good because the capital occupation is large during the long holiday and the holding time is long.

3.Liquidity: Position options are relatively illiquid, as options are relatively few trades and can be difficult to buy and sell. The liquidity of ** positions is basically unaffected.

4.Margin management: There is no need to pay margin for position options, so there is no problem with margin management. **Positions need to be adjusted according to market conditions to reduce risk.

Therefore, during the long holiday, there are advantages and disadvantages of holding options and **, and investors should choose the appropriate investment method according to their own situation. If you want to reduce your risk, you can choose to position options; If you want to make a higher profit, you can choose to hold a position**. At the same time, you also need to pay attention to margin management and liquidity issues.

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