What is an option contract?
An option is a financial derivative that represents a contract sold by one party (the option writer) to another party (the option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).
Option contract ABCs
How to read a JEX Option contract
Why invest in options?
- Leverage investment to maximize return
- Option, your account won't be burnt
- Option: limited loss, unlimited gain
Option Short/Sell:
JEX Option Short Standard：
1. A certain amount of margin and JEX will be frozen to short a certain amount of underlying option.
2. When the option is shorted, the sale price will be decided by you, and the sold asset is your income with the responsibility to sell the contract.
3. You can choose to sell or hold the options that you short, our platform will not interfere with that.
4. If you need to release the margin in advance, you can buy back the shares you have already sold, write off the position, and the margin will be released. For example, if 1000 contracts are shorted and 200 pieces are sold, if you need to release the margin in advance, you can buy back 200 contracts in the market, and ensure that your position is consistent with the quantity you short and you can apply for cancellation.
5. After the exercise time, the amount of margin required to exercise the right will be calculated automatically based on the spot strike price, and the remaining margin will be automatically returned.
6. The current short and cancellation operations need to be submitted through the work order system. System integration features have been developed and are about to be applied.
Bulletin of users’ participation in options generation and transactions
Lists of past expired option contracts
05/07/2018
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