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What does Bitcoin options expiration mean

Date:2024-06-26 18:14:47 Channel:Build Read:

In the field of digital currency, the expiration of Bitcoin options is a topic of great concern. For investors, this is not only about profits, but also about risk-taking. Let us explore in depth and unveil the mystery of Bitcoin option expiration.

Bitcoin options, as a financial derivative, give holders the right, but not the obligation, to buy or sell Bitcoin at a specific price at or before a certain time in the future. Option expiration means that the expiration date specified in the option contract has arrived, and investors need to make a decision whether to exercise the option rights. This moment often carries the expectations and anxiety of investors, because their decision is directly related to the fate of investment gains and losses.

First, let's look at the profit of option expiration. When investors buy call options, that is, they believe that the price of Bitcoin will rise. If the price of Bitcoin is higher than the strike price at expiration, investors can buy Bitcoin at the strike price and then sell it at the market price to obtain the difference profit. On the contrary, buying put options means that the price of Bitcoin will fall, and the market price is lower than the strike price at expiration, which can also make a profit. This flexible investment method allows investors to obtain returns and hedge risks in different market conditions.

However, there are often huge risks behind the profits. The Bitcoin market is highly volatile, and prices are affected by multiple factors. Once price changes exceed expectations, investors may face huge losses. Especially when options expire, investors need to accurately judge market trends, otherwise they may lose all their investments. This risk cannot be ignored, and requires investors to have rich market experience and keen insight.

In addition, there are many uncertainties in the Bitcoin options market, such as market manipulation and information leakage, which may cause investors to be unable to accurately predict market trends, and thus affect the results of option expiration. Therefore, when investors conduct option transactions, they need to be cautious, obtain market information in a timely manner, reduce risks, and improve profitability.

In general, the expiration of Bitcoin options is both an opportunity and a challenge. Investors need to maintain a balance between profit and risk, grasp the pulse of the market, and make wise decisions. Only by continuous learning and accumulating experience can we be invincible in this world of digital currencies full of variables. I hope that every investor will seize opportunities, meet challenges, and reap success on the journey of Bitcoin options expiration.

The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.


As we all know, Bitcoin suffered a heavy blow after a brief carnival brought by Tesla's US official website supporting the use of Bitcoin for payment. According to the survey data of the editor of the currency circle, the price of Bitcoin fell to as low as $50,465 at that time, just one step away from the $50,000 mark. This also caused the market to worry about whether the 50,000 mark can be maintained, especially on March 26, 2021, when Bitcoin options worth more than $6 billion expired. This can be said to be the largest Bitcoin option expiration in history, almost twice the previous record. It is precisely because of this that the term Bitcoin option expiration has appeared in the eyes of many investors who have just entered the currency circle. So, what does Bitcoin option expiration mean? Next, the editor of the currency circle will tell you in detail what Bitcoin option expiration means?

 What does Bitcoin option expiration mean?

Bitcoin option contracts also have a certain time. The expiration of Bitcoin options means that you have signed a Bitcoin option cycle. For example, the current price of Bitcoin is $8,500. You think that Bitcoin will fall in the next hour with a high probability, so you open a 1-hour option and spend 4 USDT. As you expected, Bitcoin plummeted by $500 in the following hour. The system automatically settled the account after one hour, and you will get a return of $500, which is more than 100 times the principal. On the contrary, if Bitcoin rises within one hour, you only lose 4 USDT principal. This is limited risk and unlimited profit.

 When does Bitcoin option expire?

When Bitcoin option expires is actually uncertain, it mainly depends on which exchange the investor chooses and which period Bitcoin option contract.

Bitcoin option is the same as spot, which is to predict the future rise and fall of Bitcoin, but supports buying up and selling down. In terms of operation, buy up if the expectation is bullish, and buy down if the expectation is bearish. The profit calculation is the same as spot. When buying up, you earn as much as the rise in the period, and when buying down, you earn as much as the fall in the period.

BitOffer launched a total of 7 time periods for Bitcoin options, namely: 7 days, 1 day, 12 hours, 4 hours, 1 hour, 5 minutes, and 2 minutes. Users need to select the corresponding period when placing an order.

For example, the current price of Bitcoin is 7,500 USD. After analysis and judgment, you believe that Bitcoin is likely to fall in the next hour, so you buy a 1-hour put option, spending 10 USDT.

Bitcoin fell sharply in the next hour, from 7,500 USD to 7,000 USD. The 1-hour option expires and the system settles, and your profit is 7,500-7,000=500 (USD), which is 50 times the cost. If Bitcoin rises in the next hour, you will lose the 10 USDT option principal you invested. This is the benefit of options with "unlimited returns and limited risks".

To sum up, this is the analysis of what Bitcoin options expiration means by the editor of Coin Circle. Finally, the editor of Coin Circle would like to remind investors that when playing Bitcoin options, they must learn to predict trends, predict the trend of assets, and improve the accuracy of bullish and bearish trades. Before trading, investors must understand what data, political, and economic events will affect asset trends and options markets? For example, the trade war and non-agricultural data that affect the world, as well as mastering the use of some technical indicators, such as moving averages, Bollinger Bands, KDJ, etc., are relatively simple and practical. Only in this way can investors trade Bitcoin options at the right time.

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