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Nanhua futures: The most comprehensive and detailed explanation of sugar and soybean meal option trading rules in history.
With China Securities Regulatory Commission approving Zhengzhou Commodity Exchange to carry out white sugar option trading and Dalian Commodity Exchange to carry out soybean meal option trading, the development pace of commodity options is accelerating. In this paper, we will use several tables to help investors get familiar with the relevant options trading rules issued by the two major exchanges and compare the differences between the two options trading rules.

Figure 1. Interpretation of trading rules of sugar options

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Subject matter of contract

Sugar futures contract

Contract type

Put option

Call option and put option.

Trading unit

1 lot (10 ton) sugar futures contract

Trading unit of the same futures contract

Quotation unit

Yuan (RMB)/ton

Minimum variation unit

0.5 yuan/ton

Futures contract 1 yuan/ton.

Price limit range

It is the same as the daily limit of the sugar futures contract.

Contract month

1, 3,5,7,9, 1 1 month

Same futures contract month

trading hour

Every Monday to Friday from 9: 00 a.m. to 1 1: 30 p.m., from 13: 30 p.m. to 15: 00 p.m., and other trading hours stipulated by the exchange.

last trading day

The penultimate trading day of the second month before the futures delivery month, and other dates stipulated by the exchange.

For example, the last trading day and exercise date of SR705 option contract: 2065438+March 27, 2007;

Due date

Same as last trading day.

exercise price

Based on the settlement price of sugar futures on the previous trading day, five real options, 1 flat options and five imaginary options are hanged according to the exercise price range.

For example, the settlement price of sugar 705 contract is 6748, and the corresponding closing exercise price should be 6700, with five steps as the center.

Exercise mode

Americans

expiration date

The buyer may apply for the right of way before the market closes on any trading day (15:00);

Due date

The buyer can apply for or abandon the application before 15:30.

Event code

Call option: Sr- contract month -C- strike price

Put option: Sr- contract month -P- strike price

For example, the sugar futures delivered in May 2007+2065438, the call option and the put option with the exercise price of 6700 yuan/ton, the trading codes are SR705C6700 and SR705P6700 respectively.

Exercise distance

exercise price

Distance of exercise price (yuan)

For example, the settlement price of sugar 705 contract is 6748, and the range is 3000- 10000, so the exercise price range is 100 yuan/ton, and the corresponding exercise price of closing positions should be 6700, with five steps up and down, namely 6200, 6300, 6400, 6500 and 660 respectively.

Below 3000

50 yuan/ton

3000~ 10000

100 yuan/ton

/kloc-above 0/0000

200 yuan/ton

Exercise and performance

Pairing principle

The exchange selects the seller for pairing according to the principle of holding for the longest time.

Due date

For the option positions that submit the exercise or waiver application within the specified time, the real option positions will automatically enter the mood, and other option positions will automatically give up.

Reject an application

The balance of the buyer's funds does not meet the requirements of the futures trading margin.

After the performance of the contract

Purchase option

The buyer obtains the underlying futures buying position at the exercise price;

The seller obtains the selling position of the underlying futures at the exercise price;

Put option

The buyer obtains the selling position of the underlying futures at the exercise price;

The seller obtains the underlying futures buying position at the exercise price;

Contract limit board system

Daily price limit

The daily limit price = the settlement price of the option contract on the previous trading day+the settlement price of the underlying futures contract on the previous trading day * the daily limit ratio of the underlying futures.

Example: Take sugar 1705 contract 1.4 settlement price of 6748 as an example, the settlement price of 6700 call option is 252.26, and the next day's price limit is 589.66 and 0.5 respectively.

limited price

Price of daily limit = =Max (settlement price of option contract in the previous trading day-settlement price of target futures contract in the previous trading day * ratio of daily limit price of target futures to minimum change price of option contract)

Margin system

Subscribe and sell

Whichever is greater:

1. option contract settlement price * trading unit of the underlying futures contract+trading margin of the underlying futures contract-half of the imaginary value of the option contract;

2. Option contract settlement price * trading unit of the underlying futures contract+half of the trading margin of the underlying futures contract.

Remarks:

Virtual value of call option contract = =Max (exercise price-settlement price of the underlying futures contract, 0)* trading unit of the underlying futures contract.

Virtual value of put option contract = =Max (settlement price of underlying futures contract-exercise price, 0)* trading unit of underlying futures contract.

Cross-arbitrage or broad cross-arbitrage sale

Max (margin for selling call options and margin for selling put options)+another part of the commission.

Remarks: put call option margin+put call option premium, put call option margin+put call option premium.

Reserve exchange

The sum of royalties+margin for underlying futures trading.

Remarks: At the time of daily settlement, the Exchange will automatically confirm the qualified options and future positions's arbitrage position as covered options.

Suspend trading

situation

If the underlying futures contract has a unilateral market in the same direction for three consecutive trading days and is suspended for one day, the option contract will be suspended accordingly. Today is the expiration date of the option contract, and the expiration date will be postponed to the next trading day.

Position restriction system

Volume limit

Calculate the maximum number of speculative positions in a single-month option contract based on unilateral positions.

Note: The number of unilateral positions is calculated according to the sum of positions of call options and put options and the sum of positions of call options and put options.

General position

Not yet announced

Compulsory liquidation system

Strong alternating current

The balance of settlement reserve is less than zero, and it has not been replenished or closed by itself within the specified time.

The position exceeds the position limit.

Figure 2. Interpretation of soybean meal option trading rules

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Subject matter of contract

Soybean meal futures contract

Contract type

Put option

Call option and put option.

Trading unit

1 lot (10 ton) soybean meal futures contract

Trading unit of the same futures contract

Quotation unit

Yuan (RMB)/ton

Minimum variation unit

0.5 yuan/ton

Futures contract 1 yuan/ton.

Price limit range

Same as the daily limit of soybean meal futures contract.

Contract month

1, 3, 5, 7, 8, 9, 1 1, 65438+ February.

Same futures contract month

trading hour

Every Monday to Friday from 9: 00 a.m. to 1 1: 30 p.m., from 13: 30 p.m. to 15: 00 p.m., and other trading hours stipulated by the exchange.

last trading day

The fifth trading day of the first month before the futures delivery month.

For example: the last trading day and exercise date of M 1705 option contract: April 7, 20 17;

Due date

Same as last trading day.

exercise price

The price range corresponds to the fluctuation range of the settlement price of soybean meal futures on the previous trading day 1.5 times.

For example, the contract settlement price of soybean meal 1705 is 2798, and the corresponding closing exercise price should be 2800, with a fluctuation of 209.85 points, so the exercise price is between 2550 and 3050.

Exercise mode

Americans

expiration date

The buyer may apply for the right of way before the market closes on any trading day (15:00);

Due date

The buyer can apply for or abandon the application before 15:30.

Event code

Call option: m- contract month -c- strike price

Put option: m- contract month -p- strike price

For example, the soybean meal futures delivered in May 2007+2065438, call options and put options with exercise price of 2800 yuan/ton, with trading codes of M 1705C2800 and M 1705P2800 respectively.

Exercise distance

exercise price

Distance of exercise price (yuan)

Example: The settlement price of soybean meal 1705 contract is 2796, and the range is 2586.3-3005.7, so the exercise price range is 50 yuan/ton, and the corresponding exercise price for closing positions should be 2800, with the fluctuation range of 2550-2050, 2550, 2600, 2700 respectively.

Below 2000

25 yuan/ton

2000~5000

50 yuan/ton

More than 5000

100 yuan/ton

Exercise and performance

Pairing principle

Exchanges are paired according to the principle of random and unified lottery.

Due date

For the option positions that submit the exercise or waiver application within the specified time, the real option positions will automatically enter the mood, and other option positions will automatically give up.

Reject an application

The balance of the buyer's funds does not meet the requirements of the futures trading margin.

When the real option is exercised, the balance of the settlement reserve shall meet the trading margin requirements for the settlement of the corresponding futures contract on the previous trading day.

When the virtual option is exercised, the settlement reserve shall meet the trading margin requirements for the settlement of the corresponding futures contract on the previous trading day and make up the virtual amount.

The sum of the futures contract positions established by option exercise and the original futures contract positions shall not exceed the futures contract position limit.

After the performance of the contract

Purchase option

The buyer obtains the underlying futures buying position at the exercise price;

The seller obtains the selling position of the underlying futures at the exercise price;

Put option

The buyer obtains the selling position of the underlying futures at the exercise price;

The seller obtains the underlying futures buying position at the exercise price;

Contract limit board system

Daily price limit

The daily limit price = the settlement price of the option contract on the previous trading day+the settlement price of the underlying futures contract on the previous trading day * the daily limit ratio of the underlying futures.

Example: Take the settlement price of soybean meal 1705 contract 1.5 as an example, the settlement price of a put option with an exercise price of 2800 is 84.32, and the next day's price limit is 224. 12 and 0.5 respectively.

limited price

Price of daily limit = =Max (settlement price of option contract in the previous trading day-settlement price of target futures contract in the previous trading day * ratio of daily limit price of target futures to minimum change price of option contract)

Margin system

Subscribe and sell

Whichever is greater:

1. option contract settlement price * trading unit of the underlying futures contract+trading margin of the underlying futures contract-half of the imaginary value of the option contract;

2. Option contract settlement price * trading unit of the underlying futures contract+half of the trading margin of the underlying futures contract.

Remarks:

Virtual value of call option contract = =Max (exercise price-settlement price of the underlying futures contract, 0)* trading unit of the underlying futures contract.

Virtual value of put option contract = =Max (settlement price of underlying futures contract-exercise price, 0)* trading unit of underlying futures contract.

arbitrate

no

Reserve exchange

no

Suspend trading

situation

If the underlying futures contract has a unilateral market in the same direction for three consecutive trading days and is suspended for one day, the option contract will be suspended accordingly. Today is the expiration date of the option contract, and the expiration date will be postponed to the next trading day.

Position restriction system

Volume limit

Calculate the maximum number of speculative positions in a single-month option contract based on unilateral positions.

Note: The number of unilateral positions is calculated according to the sum of positions of call options and put options and the sum of positions of call options and put options.

General position

Not yet announced

Compulsory liquidation system

Strong alternating current

The balance of settlement reserve is less than zero, and it has not been replenished or closed by itself within the specified time.

The position exceeds the position limit.

Figure 3. Investor suitability standard

Investor suitability standard

Individual investor

1. The balance of available funds in the margin account after settlement in the previous trading day shall not be less than RMB 654.38+10,000;

2. Have the basic knowledge of futures and options and pass the knowledge test recognized by the exchange;

3. Accumulated 65,438+00 trading days and more than 20 simulated trading experiences of options recognized by the exchange;

4. Experience in simulated trading of options recognized by the exchange;

5. There are no laws, administrative regulations, rules and exchange business rules that prohibit or restrict futures and options trading;

6. Other conditions stipulated by the Exchange.

Ordinary unit investors

1. The balance of available funds in the margin account after settlement in the previous trading day shall not be less than RMB 654.38+10,000;

2. Relevant business personnel have basic knowledge of futures and options, and have passed the knowledge test recognized by the Exchange;

3. Accumulated 65,438+00 trading days and more than 20 simulated trading experiences of options recognized by the exchange;

4. Experience in simulated trading of options recognized by the exchange.

5. Having relevant systems such as internal control and risk management to participate in option trading;

6. There is no shortage of strength, and the trading of futures and options is prohibited or restricted by administrative regulations, rules and exchange business rules;

7. Other conditions stipulated by the Exchange.

Figure 4. Difference of trading rules between white sugar option and soybean meal option.

Difference point

Soybean meal option

White sugar option

last trading day

The fifth trading day of the month before the delivery month of the basic futures contract.

The penultimate trading day two months before the futures delivery month.

Option arbitrage instruction

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Buy and sell long and short arbitrage

Exercise and performance

The exchange conducts practice pairing according to the principle of random and unified lottery.

The exchange selects the seller for pairing according to the principle of holding for the longest time.

To close/close/close an account

1. On the last trading day, option settlement price calculation:

Call option settlement price = =max (settlement price of underlying futures contract-exercise price, minimum change price);

Put option settlement price = =max (exercise price-settlement price of the underlying futures contract, minimum change price);

2. There is no mention of covered arbitrage position preference.

1. On the last trading day, option settlement price calculation:

Call option settlement price = =max (settlement price of underlying futures contract-exercise price, 0);

Put option settlement price = =max (exercise price-settlement price of the underlying futures contract, 0;

2. The exchange automatically confirms the arbitrage position of covered options.

risk management

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1. For selling long and short arbitrage or wide and long arbitrage, the trading margin is charged according to the larger trading margin of selling call options and selling put options plus another part of the premium.

2. The margin collection standard of covered option arbitrage trading is the sum of the premium and the margin of the underlying futures trading.