What are Options?

An Option is a contract between two parties where the taker (buyer) is given the right, but not the obligation, to buy or sell an underlying security at a specified price, at a specified time in the future.

Options contracts can be classified as either American or European with respect to their expiry type.

An American style Option gives the taker (buyer) the right, but not the obligation, to buy or sell the underlying security at a specified price anytime before or on the expiry date of the Option contract.

A European style Option can only be exercised on the expiry date.

Options are complex, high risk products and are not appropriate for all investors. You may lose all of your invested capital.

For more information, please refer to：Characteristics and Risks of Standarized Options