Virtual currency option trading
Publish: 2021-04-29 19:03:26
1. In the transaction of option contract, the buyer only needs to pay the equity, but does not need to pay the margin, while the seller requires to pay the margin.
2. The so-called option is to predict the future rise and fall. It is not difficult to understand, but it has obvious advantages over futures contracts. For example, the price of bitcoin futures contract fluctuates a lot. If you can't control it well, you will burst every minute, and you need margin and handling charges. Most options in the circle choose to go to the okex exchange. You can learn about it. Thank you for adopting and approving my reply
3. Bitcoin options are mainly played in a small and broad way, mainly when the market fluctuates. For example:
for example, if bitcoin is currently priced at US $8500, you think the bitcoin rate will probably fall in the next hour, so you open a one hour option and spend four usdt. Sure enough, as you expected, bitcoin will drop by $500 in the next hour. When it matures in one hour, the system will automatically settle, and you will get a return of $500, which is more than 100 times the principal income. On the contrary, if bitcoin rises within one hour, you will only lose four usdt principal, which means that the risk is limited and the income is unlimited
at present, I play on bitoffer, which is the place with the most players, and it is relatively mature and safe
for example, if bitcoin is currently priced at US $8500, you think the bitcoin rate will probably fall in the next hour, so you open a one hour option and spend four usdt. Sure enough, as you expected, bitcoin will drop by $500 in the next hour. When it matures in one hour, the system will automatically settle, and you will get a return of $500, which is more than 100 times the principal income. On the contrary, if bitcoin rises within one hour, you will only lose four usdt principal, which means that the risk is limited and the income is unlimited
at present, I play on bitoffer, which is the place with the most players, and it is relatively mature and safe
4. Reliable fart, I made options above, can't cash out, cheat platform, can't play!
5. Bitcoin contract is futures, futures and options are essentially a derivative of bitcoin, but also spot hedging tools! But generally speaking, options are better than futures. We can compare them according to several points
first of all, if the current price of bitcoin is $8000, when bitcoin rises from $8000 to $8500
1. Cash, get $500
2. Bitoffer options, get $500
3. How to get $500 for futures
for example, you can get $500 by using $500 principal, opening 20 times leverage and increasing by 5%
when the returns of the three are the same, we find that the option advantage is the most obvious
cash, need to invest $9000
futures, need to invest $500
Options, need to invest $5
first of all, if the current price of bitcoin is $8000, when bitcoin rises from $8000 to $8500
1. Cash, get $500
2. Bitoffer options, get $500
3. How to get $500 for futures
for example, you can get $500 by using $500 principal, opening 20 times leverage and increasing by 5%
when the returns of the three are the same, we find that the option advantage is the most obvious
cash, need to invest $9000
futures, need to invest $500
Options, need to invest $5
6. At present, only biquan.com offers European options. Other exchanges, such as 796 exchange, trade 711 and options, are binary options. Strictly speaking, binary option is not a real option, but a simple bet on the rise and fall. European option can hedge against spot, with unlimited income and limited risk. If the real estate owner plays bitcoin option, I think biquan.com is quite good. Bitcoin option only takes bitcoin as the subject matter. The buyer pays an option fee to the seller in exchange for the right to buy or sell the subject matter based on bitcoin index at a certain price in the future.
7. Most of them need to exercise, which means that the cost will be particularly high. At present, only bitoffer does not need to exercise, which means that at least $5 may be able to buy an option.
8. I can think of two famous virtual currency platforms deribit and primexbt. Deribit offers longer time frame trading contracts, while on primexbt, you will find Binary Options with very short time periods. Bitcoin is available in 10 minutes and 15 minutes, while on other assets, you can find options of 1 minute and 5 minutes. The good thing is that in addition to bitcoin and Ethereum, you can also play Binary Options on foreign exchange. On deribit, you only have bitcoin and Ethereum as trading options.
9. RMB option is a kind of currency option based on RMB. Currency option transaction refers to the transaction in which the option buyer obtains the right to buy or sell a certain amount of a certain currency at a certain time or period according to the price agreed by both parties
the operation method of currency option trading
the application scope of currency option trading is basically the same as forward foreign exchange trading. The operation method is as follows:
the importer or debtor buys the right to buy the currency at the time of transaction. If the spot exchange rate on the payment date is higher than the agreed exchange rate, the option can be exercised to purchase the currency according to the agreed exchange rate; On the other hand, if the spot exchange rate is lower than the agreement exchange rate, the exercise option can be abandoned and the contract will automatically lapse, and the currency can be bought at a relatively low spot exchange rate in the foreign exchange market
the exporter or creditor purchases the put right of the currency at the time of transaction. If the spot exchange rate on the date of collection is lower than the agreed exchange rate, the right to sell the currency at the agreed exchange rate can be exercised; On the other hand, if the spot exchange rate is higher than the agreement exchange rate, the exercise option can be abandoned and the contract will automatically become invalid, and the currency can be sold at a relatively high spot exchange rate in the foreign exchange market
for example, if a company wants to recover a sum of 1 million pounds after three months, the company is worried that the depreciation of pound against the US dollar will bring losses to itself, so it decides to prevent exchange rate risk by purchasing a put option of 1 million pounds. The agreed exchange rate is 1 pound = 1.5 US dollars, and the option fee is 0.02 US dollars / pound, totaling 20000 US dollars
three months later, there may be three situations:
the spot exchange rate in the market is lower than the agreed exchange rate, and it is set as 1 pound = 1.45 US dollars. At this time, the option is in real value. The company decides to exercise the option and sell 1 million pounds according to the exchange rate stipulated in the contract to get 1.5 million US dollars. Minus the option fee of 20000 US dollars, the actual recovery is 1.48 million US dollars. If we don't trade options, the company can only recover $1.45 million, which is $30000 less
the spot exchange rate in the market is equal to the agreement exchange rate. At this time, the option is in a flat situation, and the option itself has no profit or loss. After decting the option fee, the company actually recovered $1.48 million. Compared with not doing options trading, the company paid $20000 more in option fees
the spot exchange rate in the market is higher than the agreed exchange rate, which is set as 1 pound = 1.56 US dollars. At this time, the option was in a state of virtual value. The company decided not to exercise the option and let it lapse automatically. Instead, it sold 1 million pounds according to the market exchange rate and got $1.56 million. Minus $20000 option fee, it actually recovered $1.54 million
it can be seen from the above example that options are used to prevent exchange rate risk, determine the bottom price for selling and the top price for buyers, and at the same time enjoy the benefits brought by exchange rate changes. In the above example, no matter how the exchange rate changes, the option can guarantee the company to recover at least $1.48 million.
the operation method of currency option trading
the application scope of currency option trading is basically the same as forward foreign exchange trading. The operation method is as follows:
the importer or debtor buys the right to buy the currency at the time of transaction. If the spot exchange rate on the payment date is higher than the agreed exchange rate, the option can be exercised to purchase the currency according to the agreed exchange rate; On the other hand, if the spot exchange rate is lower than the agreement exchange rate, the exercise option can be abandoned and the contract will automatically lapse, and the currency can be bought at a relatively low spot exchange rate in the foreign exchange market
the exporter or creditor purchases the put right of the currency at the time of transaction. If the spot exchange rate on the date of collection is lower than the agreed exchange rate, the right to sell the currency at the agreed exchange rate can be exercised; On the other hand, if the spot exchange rate is higher than the agreement exchange rate, the exercise option can be abandoned and the contract will automatically become invalid, and the currency can be sold at a relatively high spot exchange rate in the foreign exchange market
for example, if a company wants to recover a sum of 1 million pounds after three months, the company is worried that the depreciation of pound against the US dollar will bring losses to itself, so it decides to prevent exchange rate risk by purchasing a put option of 1 million pounds. The agreed exchange rate is 1 pound = 1.5 US dollars, and the option fee is 0.02 US dollars / pound, totaling 20000 US dollars
three months later, there may be three situations:
the spot exchange rate in the market is lower than the agreed exchange rate, and it is set as 1 pound = 1.45 US dollars. At this time, the option is in real value. The company decides to exercise the option and sell 1 million pounds according to the exchange rate stipulated in the contract to get 1.5 million US dollars. Minus the option fee of 20000 US dollars, the actual recovery is 1.48 million US dollars. If we don't trade options, the company can only recover $1.45 million, which is $30000 less
the spot exchange rate in the market is equal to the agreement exchange rate. At this time, the option is in a flat situation, and the option itself has no profit or loss. After decting the option fee, the company actually recovered $1.48 million. Compared with not doing options trading, the company paid $20000 more in option fees
the spot exchange rate in the market is higher than the agreed exchange rate, which is set as 1 pound = 1.56 US dollars. At this time, the option was in a state of virtual value. The company decided not to exercise the option and let it lapse automatically. Instead, it sold 1 million pounds according to the market exchange rate and got $1.56 million. Minus $20000 option fee, it actually recovered $1.54 million
it can be seen from the above example that options are used to prevent exchange rate risk, determine the bottom price for selling and the top price for buyers, and at the same time enjoy the benefits brought by exchange rate changes. In the above example, no matter how the exchange rate changes, the option can guarantee the company to recover at least $1.48 million.
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