Moomoo Singapore Help Center-What is an option premium
English
Back
Download
Clear
All
Quotes
News
Learn
Help
All
US
HK
CN
SG
AU
JP
CA
MY
All
News
Announcements
No matches yet
Operations too frequent. Please try again later.
Please check network settings and try again Refresh Refresh
Loading
History record
    Latest News
      Quotes More
      News More
      Learn More
      Help More
      Loading
      News More
      Announcements More
      Reports More
      Log in to access Online Inquiry
      Back to the Top
      Help Center Trading Futures/Futures Options Margin Rules What is an option premium

      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 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

      Popular Gold Mining Stocks Popular Gold Mining Stocks

      Amidst the uncertain outlook of the trade war and escalating concerns about an economic recession, gold prices have repeatedly reached new highs this year, at one point surpassing $3,500 per ounce. This marks an almost 30% increase since the beginning of the year. For investors in U.S. equities, investing in gold mining stocks represents a significant opportunity to ride this wave. Amidst the uncertain outlook of the trade war and escalating concerns about an economic recession, gold prices have repeatedly reached new highs this year, at one point surpassing $3,500 per ounce. This marks an almost 30% increase since the beginning of the year. For investors in U.S. equities, investing in gold mining stocks represents a significant opportunity to ride this wave.

      No. Symbol 5D % Chg
      Sample Name
      Sample Code
       +9.29%
      Sample Name
      Sample Code
       +9.12%
      Sample Name
      Sample Code
       +9.08%
      4
      Idaho Strategic Resources
      IDR
      +8.11%
      5
      SSR Mining
      SSRM
      +5.57%
      Unlock Now

      - No more -