How do ordinary investors profit from option investment?
As we all know, option trading is leveraged trading. Once the option is used for trading, investors are very likely to realize several times or even dozens of times of income. After all, option trading is a kind of financial derivative trading, and its purpose is to earn profits from the price changes of the underlying assets. There are two main ways to profit from options trading: buying options and selling options, and profiting from the price difference of options contracts by buying up or buying down.
Ordinary investors profit from options;
Stock options provide investors with the choice of two-way trading. If investors expect the underlying price to rise, they can buy call options; If the target price is expected to fall, you can buy put options. Whether the target price goes up or down, investors are likely to make a profit. Secondly, we should have short-term thinking and try not to resist orders, especially virtual contracts. 50ETF option is a "T+0" trading mode, which can be bought and sold during the trading period. However, frequent operation is not recommended, which will pay a high transaction cost.
Source Baidu: Caishun Option
What should I do if the option investment encounters a loss?
In the option trading market, stop loss is an important operation to control profit and loss. When the market situation is unfavorable to investors, investors are advised to decisively close their positions and stop losses. No one knows how long this trend will last. The best way is to leave and wait for the next trading opportunity. If you encounter losses caused by operational errors, you should also close your position in time. Only by maintaining the balance of principal can we make a comeback. In fact, as long as you can control your own rhythm in your mind, you can calm down your losses within a certain period of time, instead of losing more and more.