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BTC options trading volume has achieved historical high since the halving occurred on 12th of May. Bitoffer, as one of the most specialized STO exchanges in the world, shows that the trading volume of options trading exceeded $ 1 billion in the BTC halving week. The data further updates that a large number of institutional investors bought bitcoin options when Bitcoin hit the 10,000 mark, and block transaction data skyrocketed by 10 times, accounting for about 70% of the day's trading volume. It can be seen that after the Bitcoin halving, the funds have gradually entered the market and the mid-to-long-term market outlook continues to be optimistic.submitted by Bitoffer_Official to BitOffer_Official [link] [comments]
Behind the large-scale entry of institutions, the bitcoin market has frequently collapsed. There were 5 flash crashes and dives in a week before the $10,000 mark, and the declines were all above $200 within 1 hour, which caused the market atmosphere to become increasingly negative and the long lineup began to split and disintegrate and ended with a straight-line decline of 4.3% on the night of 20th of the May. Many people were miserable as the futures liquidation volume reached more than 1 hundred million US dollars that night, while others may felt thankful since even experienced the slump at the BTC halving night, the return of those open interest options is still as high as $170 million.
Under such extremely market, there’ no doubt that the options win the futures completely in comparison mainly because the unique preponderance of Bitcoin, such as the Bitcoin option launched by Bitoffer, which has 0 deposit, 0 fee and with its own 1000X leverages but without the liquidation mechanism, which is more suitable for the short-term fluctuation market. However, the futures only hold the 100X leverages with higher cost and the liquidation risk with any carelessness and that is extremely dangerous. The option has no such worries because when spending a very small cost can obtain excess returns, even if the direction is wrong, there will be only a little loss of premium.
What is Bitcoin Option?
In some ways, Trading Bitcoin Options is similar to trading BTC on the spot trading market. Both need investors to predict the Bitcoin price in the future, but Options trading supports investors to long or short Bitcoin: Buy call when you expect the Bitcoin price to be bullish, but put when you expect the Bitcoin price to be bearish. If investors buy a call, they would earn the price spread as profits when the Bitcoin price rises; If investors buy put, investors would earn the price spread as profits when the Bitcoin price drops. In short, investors will be able to earn a huge profit with a small budget in this way.
So how to trade Bitcoin options?
For example, the Bitcoin now is $10,000 and you expect it will rise after 1 hour, therefore, you open a 1-hour call option and spend 20 USDT costs. As expected, Bitcoin rose by US $500 in 1 hour, and the system automatically settled within 1 hour of expiration. You get a return of US $ 500, which is equivalent to 25 times the return of the principal.
If bitcoin falls for the next hour, you will lose 20 USDT of the initial cost, which is the benefit of the option, "unlimited return with limited risk."
How do options compare to contract in advantages?
When the current price of Bitcoin is 10,000 US dollars, and when it rises from 10,000 to 10,500 US dollars.
For example, open a contract with 500 US dollars as principal and make 20X leverage, then Bitcoin needs to rise by at least 5% to double its assets, that is, a 5% increase from 10,000 US dollars to 10,500 US dollars.
When the contract and option return are the same
Futures, need to invest 500 USD
Options, need to invest 10 dollars
After comparison, the option investment is extremely low and also as the natural risk, which the return is very high: the investment of 10 US dollars can get a return of 500 US dollars, based on cost calculation is equivalent to 50 times the return. By a slight comparison, we can see that it is hard for futures to catch up with the options.
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https://preview.redd.it/sar7oh51pob41.jpg?width=1920&format=pjpg&auto=webp&s=a844cf36ea440d9b12d03d233f1b4ccc06eb239csubmitted by Bitoffer_Official to BitOffer_Official [link] [comments]
Welcome to the first chapter of BitOffer Institution! In this chapter, we are going to instruct what is Bitcoin Options. Recently, more and more cryptocurrency exchanges have launched Bitcoin Options. However, to most investors, they have no idea about Bitcoin Options and even Bitcoin Futures. Without knowing the rules, it is nearly impossible for us to win the game.
Educating investors is necessary for every investment market. A few days ago, on the International Derivatives Forum, Ian Nissen, APAC Head of Futures, Clearing and Collateral in Citi, mentioned:” Volatility is noticed by public again while the issue of using options trading to complete the risk management are valued.”. Besides, the technology is following up with the changes in the market while more and more new technologies are put into the Options trading market. Continuous education to investors is crucial to the development of the Options trading market.
The bitcoin Derivatives market has developed rapidly, but most investors still have not understood how to use Options trading. The answers to” What is Bitcoin Options” and “How to Trade Bitcoin Options” are as follows.
What is Bitcoin Options?
Options is essentially a kind of rights that enables the holder to buy or sells an asset at a fixed price at a specific date (or before the date). Just like the futures trading is a hedging tool for spot trading, so is options trading.
For example, when you plan to buy a house, dealers always offer discounts when you pay a deposit first. After then, when the value of the house drops sharply, you can choose not to buy the house, and your largest loss is the deposit. On the contrary, if the value of the house increases, then you would earn the price spread as profits. This is how options works and the deposit is the premium of the Options trading.
How to Trade Bitcoin Options?
In some ways, Trading Bitcoin Options is similar to trading bitcoins on the spot trading market. Both needs investors to predict the bitcoin price in the future, but Options trading supports investor to long or short bitcoins: Buy call when you expect the bitcoin price to be bullish, but put when you expect the bitcoin price to be bearish. If investors buy call, investors would earn the price spread as profits when the bitcoin price rises; If investors buy put, investors would earn the price spread as profits when the bitcoin price drops. In short, investors will be able to earn a huge profit with a small budget in this way.
Take BitOffer Bitcoin Options as an example, it requires 0 fees, 0 margins. The most significant feature of BitOffer Bitcoin Options is its unlimited profit with limited risk. Whether the bull or bear market, investors are able to earn profits up to 1,000X. With the purpose of providing investors a precise hedge tool and an additional trading product, BitOffer Bitcoin Options is also the only Bitcoin Options that does not request investors to exercise the options contract when the contracts settled.
Now BitOffer Bitcoin Options supports 7 different time lengths for investors to choose: 7-days, 1-day, 12-hours, 4-hours, 1-hour, 5-mins, 2-mins.
1. Call Options:
For example, the bitcoin price now is $9,000, you predict that the bitcoin price will probably rise in a week, then you buy a 7-days call options contract with $200. After a week, the bitcoin price rises by $2,000 (from $9,000 to $11,000), when your 7-days call options contract settled, you will earn $2,000-$200=$1,800 as a net profit, of which rate of return reaches 900%.
2. Put Options
For example, the bitcoin price now is $10,000, you predict that the bitcoin price will probably drop in a week, then you buy a 7-days put options contract with $200. After a week, the bitcoin price drops by $2,000 (from $10,000 to $8,000), when your 7-days put options contract settled, you will earn $2,000-$200=$1,800 as a net profit, of which rate of return reaches 900%.
If the direction of the contract you buy is wrong, you would lose the premium you pay to buy the options contract. Therefore, we can conclude that Bitcoin Options is a trading with unlimited profit but limited risk. In other words, Bitcoin Options requires a low budget but allows investors to earn a high profit with low risk. Thus, compared with Bitcoin Futures, without the risk of liquidation, Bitcoin Options is much more acceptable for most investors.
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How To Trade Bitcoin – Buying Your First Bitcoin. Bitcoin can be bought in a variety of ways depending on where you live on earth. Trading Bitcoin has become very popular – millions of dollars are being traded every day. The following options are widely used: Once you are approved to trade futures, you still need access to /BTC to add bitcoin trading to your account. To request access, contact the Futures Desk at 866-839-1100. Please note that the TD Ameritrade margin requirement for bitcoin futures products is 1.5 times higher than the exchange margin requirements, and is subject to change without ... Since December 10, 2017, bitcoin futures have been available to trade on the Chicago Board Options Exchange (CBOE). A few days later, on December 17, Bitcoin hit its all-time highest price of ... Bitcoin Options Contracts. A Bitcoin options contract derives its value from Bitcoin, which acts as the underlying asset. Like all Bitcoin derivatives, Bitcoin options have the potential to be incredibly profitable because of Bitcoin’s volatility. Needless to say, however, this volatility comes with risk. The simple user interface and low trading fees (0.04% per options trade), make Deribit a great options exchange for beginners. More sophisticated options traders might want to have a look at FTX, which recently also launched Bitcoin Options. On the contrary to Deribit, FTX does not have a pre-set options orderbook and traders can instead ...
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