What Is a Spread Option?

Spread Trading was invented in 1974. The change range of the target financial transaction object of the transaction is a trading method that uses margin enlargement to place bets on the one-sided change range, that is, the spread change, based on the position opening price.

Spread trading

At the price of 100 yuan, Buy, the price becomes 101 yuan-1 point of profit, 102 yuan, 2 points of profit

At the price of 100 yuan (Sell), the price becomes 101 yuan-1 point of loss, becomes 102 yuan, 2 points of loss

Even mock holding the target

1. what is

Spread trading and futures options

Financial spread betting and futures and options have the following differences:

Spread transaction fees via

example:
1. You buy and sell A shares using the conventional stock trading method (without consideration of transaction fees and additional costs such as stamp tax). You bought 200 shares at a purchase price of 100 yuan with 20,000 yuan. When the selling price of the stock price reaches 400 yuan You throw out all 200 shares and make a net profit of 400x200 yuan-20,000 yuan = 60,000 yuan, which is equivalent to getting 60,000 / 20000 = 300% profit.
2. The above 60,000 yuan stock investment income can also be realized by spread trading, assuming that the A stock price changes per yuan (that is, the price of A stock is changed per unit of yuan), and the spread trading company provides to The quotation of the client's A-share buying and selling prices is the same as that provided by traditional stock brokers (which is basically inconsistent in reality). At the buying price of 100 yuan, you open a position to buy. Buy 20 yuan, when the selling price of A shares reaches 400 yuan, you close the position, sell all your positions, and make a net profit of (400100) x 20 yuan = 60,000 yuan. In the above example, it is shown that buying 20 yuan per yuan with spread trading is the same as the 20,000 yuan using conventional stock purchases. However, the use of spread trading for customers does not actually own any stocks. By using conventional transactions to buy and sell stocks, customers have actually owned 200 A shares of assets.