Sample Name
Sample Code
Sample Name
Sample Code
Sample Name
Sample Code
4
XLF 260320 53.00P
XLF260320P53000
5
GLD 260220 475.00C
GLD260220C475000
What is an option premium
1. What is an option premium?
An option premium is the cost or price of an option contract. For options on futures traded on exchanges, premiums are usually calculated per contract and are received by option sellers.
2. How are premiums paid for different types of options on futures?
There are two types of options on futures: futures-style and equity-style options.
For futures-style options, the buyer does not need to pay the premium upfront, and profit or loss is realized through cash settlement when the option is exercised or assigned. Futures-style options behave in a manner somewhat analogous to that of futures, and both the buyer and seller are required to maintain a certain margin in case of default. Hong Kong index options contracts are an example. For details, click here.
For equity-style options, the buyer needs to pay the premium immediately, and the seller will receive it. In this case, the buyer is exempt from margin requirements, and changes in the premium will not lead to changes in the margin requirements. However, the seller still needs to maintain a sufficient margin after receiving the premium in case the option is assigned. CME Gold option contracts are an example. For details, click here.
Overview
Market Insights
Invest with Futu! Invest with Futu!
Hot Topics Hot Topics
The market is ups and downs, did your options make or lose?
近期股市強烈波動，有牛友拿期權對沖風險，也有牛友趁機把握住財富密碼！快來一起PK期權收益，看看誰是最強期權收益王！ 還未有進行期權交易的用戶，可以領取價值2188港元的期權新手禮包，馬上開啟期權投資之旅，查看詳情>> Show More
袜刬金钗溜
Sep 12, 2025 16:50
This year, I made a lot of money by following Duan Yongping's strategy of selling put options. What makes this strategy so powerful?
只想吃一口蛋糕
Sep 3, 2024 11:06
我们说的期权是一种三维交易的品种，
- No more -