What are the characteristics of standard options trading?

Standard options can not only be used as the best tool for you to manage risks, but also can be used to speculate, predict the market trend and obtain investment returns. You can not only make profits by buying short-term standard options of active products, but also trade medium and long-term standard options of stable products.
Standard options have different trading methods. The main characteristics of standard options are call option (when the underlying asset price is expected to increase) or put option (when the underlying asset price is expected to fall), strike price (the price reached or exceeded before maturity or when the trader closes the position), and expiration date (the date when the option matures and closes the position). Standard option is the simplest option in option family.
A standard call option gives the buyer the right, but not the obligation, to purchase a call option (when the price rises) or a put option (when the price falls) of the underlying financial product on a pre-defined date (called the "effective period") at a pre-defined price (called the "strike price"). When purchasing the standard option, the buyer shall pay the premium of the above rights when building the position, which shall be deducted from the account balance.
Because of its diversity, standard options are suitable for individual and corporate traders. Standard options allow traders to predict the direction of the underlying product. When trading options, it is very important to know which macroeconomic events will affect the trading products, because these will help you calculate the premium value when the options mature.