How much is the handling fee for the seller of 50ETF options?

Mondo Finance Updated on 2024-03-06

The handling fee charged by the buyer and seller of 50ETF options is the same, except that the option seller does not charge a handling fee when opening a sell position or a covered position.

The handling fee of 50ETF options is charged in both directions, such as opening a position of 7 yuan, closing a position of 7 yuan, and buying and selling a two-sided 14 yuan. In the case of unilateral charging of commissions, only one commission is charged per transaction, whether it is ** or selling. The two-sided charging fee is to charge the handling fee separately at the time of ** and selling, which is equivalent to two charges. While it may seem like a one-sided fee may be more appealing, it's actually the overall transaction cost that investors need to consider.

For example, let's say platform A charges a unilateral fee of $7 and platform B charges a bilateral fee of $14. If an investor makes a trade, the actual cost on platform A is $14 ($7 each for ** and sell), and the actual cost on platform B is $14. Therefore, when choosing a trading platform, investors need to consider other factors in addition to the way the fee is charged, such as the reliability of the platform, the speed of transaction execution, etc.

Release**: Option Sauce.

Is there a fee included in the commission fee?

The commission fee is inclusive of the official fee and there is no additional cost.

Take ETF options, for example, which include a Level 1 fee16 yuan (handling fee 1.)3 yuan, settlement fee 03 yuan), the commission for each transaction is generally 17-5 yuan, while the option platform account requires 7 yuan per side, which also includes the operating and maintenance costs of the software.

How are commissions charged for options trading?

At present, there are six types of transactions: ** opening, selling and closing, selling opening, ** closing, covered opening and covered closing.

There is no charge for opening a position by selling or covering a position as a seller.

How is the option exercise commission charged?

Since July 2021, the option exercise fee has been changed from being charged bilaterally to only for the exercising right client.

For options trading, fees are indeed a cost to be concerned about. Here are some possible ways to save on options trading fees:

1.Choose a platform with low fees.

Different brokerages charge different fees for option fees, and you can compare them and choose a brokerage with relatively low handling fees to open an account for trading.

2.Trade large units.

Most brokerages adopt a decreasing system for transaction fees, and the higher the trading volume, the lower the fee per unit. Therefore, if the financial strength allows, you can concentrate your funds to do transactions in large units.

3.Use composite strategies such as butterfly.

For portfolio option strategies such as butterfly, the overall handling fee is often lower than the cost of the corresponding single option under the same risk and return.

4.Reduce excessive adjustments.

Frequent closing and re-opening of positions will result in repeated charges of some fees, so the frequency of adjustment operations should be carefully controlled.

By using the above methods, you can reduce the cost of option transaction fees to a certain extent while satisfying your own trading strategy and risk appetite.

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