The subject matter of the risk option contract is selected by the Shanghai Stock Exchange according to relevant rules, not by the issuer of the subject matter of the contract. Issuers of SSE and underlying contracts are not responsible for the listing, listing, contract terms and market performance of option contracts. The buyer of the option does not enjoy the rights as the holder of the subject matter of the contract before the delivery of the exercise right.
The risk of non-exercise at maturity In the option buying transaction, investors can choose to close the option contract, hold the option contract until it expires, or let the option contract expire. If an investor chooses to hold an option until the expiration of the exercise period, it shall ensure that there are enough contract targets or funds required for the exercise in its corresponding account. If the investor who holds the rights warehouse chooses not to exercise the rights at the expiration of the contract, the investor will lose all the investment amount paid by him, including royalties and transaction fees.
The risk of selling and opening positions is generally higher than that of buying options. Although the seller can get the royalty, he is also faced with the loss much higher than the royalty due to the fluctuation of the price of the subject matter of the contract because of the exercise and performance of his obligations.
Price fluctuation and other market risks When trading options, investors should pay attention to the price fluctuation of the contract target, option price fluctuation and other market risks and their possible losses, including but not limited to the following situations: the option buyer loses all the paid royalties due to the price fluctuation of the option target; Because the option seller has the obligation to exercise the performance right, the loss caused by the price fluctuation of the contract target may be far greater than the royalty it receives.
The calculation method of risk option's price limit is different from spot price limit, so investors should pay attention to the daily price limit of option contract.
Venture investors with contract adjustment should pay attention to the ex-dividend treatment of the subject matter of the contract in the event of dividend, bonus, share delivery, capitalization of reserve fund, allotment, share split or merger. The Shanghai Stock Exchange will adjust the contract unit and exercise price of the unexpired option contract, and the transaction and settlement of the contract will be carried out in accordance with the adjusted contract terms.
During the duration of the suspended risk option contract, if the subject matter of the contract is suspended, the trading of the corresponding option contract is also suspended; When there is abnormal fluctuation in option trading or suspected violation of laws and regulations, the Shanghai Stock Exchange may suspend the option contract.
When trading options, venture investors with limited positions, limited purchases and limited positions should strictly abide by the relevant business rules of the Shanghai Stock Exchange and the regulations on limited positions, limited purchases and limited positions in the market announcement, and report in time when required by the Shanghai Stock Exchange. Investors' positions exceeding the prescribed limit will lead to the risk of being restricted from selling and opening positions, buying and opening positions and forcibly closing positions.
Contract Liquidity Risk Investors should pay attention to the risks that option contracts may be difficult or impossible to close and the possible losses. When the market trading volume is insufficient or the price continues to rise and fall unilaterally, the option contract holders may not find the opportunity to close their positions in the market.
Risk of portfolio strategic position The portfolio strategic position does not participate in the automatic hedging of the position at the end of each day. If more than 65,438+0 component contracts reach the automatic release trigger date stipulated by the Shanghai Stock Exchange and China Settlement within the duration of portfolio strategy positions, the portfolio strategy will be automatically released at the end of that date. Except for the types of portfolio strategies specified by Shanghai Stock Exchange, investors may not unilaterally close the component contracts corresponding to the portfolio strategies.
Front-end control risks are submitted by clearing participants as a unit, and front-end control is carried out on the selling and opening declarations of derivative contract accounts that clearing participants are responsible for. Regardless of whether the investor's margin is sufficient or not, if the balance of the daytime margin of the settlement participant is less than the correct amount corresponding to the selling margin or the buying margin, the corresponding selling margin or the buying margin is invalid.