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Differences between 50ETF options and soybean meal and sugar options
50ETF option, soybean meal option and sugar option are option contracts with different subject matter, and they are different in subject matter, market characteristics and trading characteristics. The following are their main differences:

1. Subject matter difference:

-50ETF option: the SSE 50ETF is the subject matter, that is, the ETF of the SSE 50 Index.

-soybean meal option: soybean meal is the subject matter, which is a by-product of soybean processing and is mainly used for feed and food processing.

-White sugar option: taking white sugar as the subject matter, which is a food and industrial raw material refined from sugar cane or sugar beet.

2. Differences in market characteristics:

-50ETF option: It is related to the stock market of SSE 50 Index and is influenced by stock market fluctuation and investor sentiment.

-Soybean meal option: influenced by agricultural products market, soybean industry chain and other factors, and also influenced by fluctuations in the international soybean market.

-White sugar option: influenced by agricultural products market, sugarcane industry chain and other factors, as well as the fluctuation of international sugar market.

3. Differences in transaction characteristics:

-50ETF option: Trading is mainly in China stock market, and the option price is related to the fluctuation of SSE 50 index.

-Soybean meal option: the transaction is mainly in China agricultural products market, and the option price is related to the fluctuation of soybean meal price.

-White sugar option: the transaction is mainly in China agricultural products market, and the option price is related to the fluctuation of white sugar price.

4. Seasonal differences:

-50ETF option: Affected by the overall seasonality of the stock market, it may be affected by factors such as the year-end surge effect.

-Soybean meal option: affected by seasonal factors such as growing season and harvest season of agricultural products.

-White sugar option: influenced by seasonal factors such as the growing season and harvest season of sugarcane.

5. Differences in industry and fundamental factors:

-50ETF option: influenced by macroeconomic and policy changes, it is related to the overall trend of China stock market.

-Soybean meal option: influenced by agricultural policies, climate, international trade and other factors, it is related to the relationship between supply and demand of soybean meal.

-White sugar option: influenced by agricultural policy, climate, international sugar price and other factors, it is related to the supply and demand of white sugar.

The following are the basic differences in the trading system

1, commodity options is different from stock options.

Commodity options is the abbreviation of commodity futures option, and the target is commodity futures contract. Therefore, 50ETF options, which belong to stock options, are traded in Shanghai Stock Exchange, while white sugar options and soybean meal options, which belong to commodity futures options, are traded in Zhengzhou Commodity Exchange and Dalian Commodity Exchange respectively. Don't make a mistake.

In addition to different trading places, a more important difference between commodity futures options and stock options lies in the different nature of the subject matter. Under normal circumstances, the stock (ETF) is almost a perpetual target, which means that the option target will not disappear or end; However, the subject matter of futures options-futures, has a contract expiration date, that is to say, the subject matter of options will disappear and end at a certain time! Therefore, in order to ensure the exercise of options, the contract expiration date of sugar (soybean meal) futures options must be earlier than the expiration date of their underlying futures contracts (that is, the sugar and soybean meal futures contracts in the corresponding month)!

For white sugar options traded in Zhengshang Stock Exchange, the expiration date of the option contract is the penultimate trading day two months before the delivery month of the corresponding white sugar futures target; For the soybean meal option traded in the Dashang Exchange, the expiration date of the option contract is the fifth trading day of the month before the delivery month of the soybean meal futures target.

2. The newly listed options can be exercised in advance.

Both sugar option and soybean meal option belong to American option, while the existing 50ETF option belongs to European option. European options can only be exercised on the expiration date, while American options can apply for early exercise before the expiration date, which is more flexible and convenient.

The more flexible exercise mode of American options requires a richer exercise price system to cover the fluctuation of the underlying price. The sugar futures option hangs 1 exercise price, 5 exercise prices above the average value and 5 exercise prices below the average value. The exercise price of soybean meal futures options will cover the price range corresponding to the fluctuation of the settlement price of the underlying futures contract on the previous trading day 1.5 times the daily limit.

With the change of futures price, when the exercise price range cannot cover this range, the exercise price of options will be increased. The purpose of this is to ensure that the exercise price contract listed in the day's transaction can cover the price fluctuation of the target day, and provide the market with enough choices to meet the diversified investment needs of investors.

Since American options can be exercised in advance, should they be exercised in advance if they are purchased? We know that the value of option = intrinsic value+time value, and if we choose to exercise, it is equivalent to giving up the time value of option. Therefore, the better choice is to close the position, because we can get that part of the time value by choosing to close the position. Foreign experience also shows that the proportion of investors who choose to exercise in advance in the actual market is very small. After all, everyone wants to make more money.

3. with? The number of ETF targets is different

Compared with the stock (ETF), there is only one target for each variety in the market. Another obvious difference of commodity futures is that different month contracts of each futures variety will coexist in the market, that is, a variety will have n targets: sugar futures options have 6 targets, while soybean meal futures options have 8 targets!

Obviously, futures contracts in different months will have corresponding option contracts, so the contract months of sugar (soybean meal) options are also corresponding to futures contracts: for sugar options in Zhengshang Institute, the contract months are 1 month, March, May, July, September, 1 1 month, and one * *. For the soybean meal option of Dashang Institute, the contract months are 1 month, March, May, July, August, September,1month,1February, and one ***8 months. The months of the sugar option contract are all single months, while the soybean meal option contract is 8, 12 more than the sugar option, so it is easier to remember.

4. Different from the setting of ETF ups and downs.

Compared with the stock (ETF), which has a definite price limit, another complication of futures contracts is that the price limit of each variety may be different. Correspondingly, white sugar (soybean meal) options also have ups and downs. The price limit of white sugar option and soybean meal option is the same as that of the corresponding futures contract, which can enhance the linkage between futures and options.

5. The entry threshold is lowered.

Compared with the entry threshold of 500,000 yuan for 50ETF options, the commodity options threshold is slightly lower. First of all, the available balance in the margin account is not less than100000 five trading days before the option trading authority is opened.

The second is to have experience in simulated trading, that is, accumulated 10 trading days, 20 or more simulated trading records of options, and at the same time have the exercise records of simulated trading of options recognized by the exchange; The third is to pass the knowledge test recognized by the exchange.

Compared with the higher threshold of 50ETF options, lowering the investment threshold will attract more investors to enter this market and promote the development and prosperity of the options market.

Of course, 50ETF options can also be traded through the option warehouse platform. From: option circle