The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
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.

Recently, the term Bitcoin options has become popular in the currency circle. However, for most investors, they only know the term Bitcoin options and do not understand what Bitcoin options specifically mean. Before explaining Bitcoin options, the currency circle The editor will first explain options. Options refer to a type of contract, which was originally derived from the need for risk hedging or hedging. Returning to Bitcoin options, what are Bitcoin options? Below, the editor of the currency circle will briefly explain Bitcoin options. I hope that through this article, investors can understand Bitcoin options.

 What are Bitcoin options?

It is a financial instrument generated on the basis of futures, which allows the buyer (or holder) to buy or sell the underlying asset (underlying
asset) rights. The holder of an option can choose to buy or not buy, sell or not sell within the time specified in the option. He can exercise the right or give up the right. The seller of the option is only responsible for the option contract. stipulated obligations.

Bitcoin options, also known as Bitcoin index options, mean that option buyers pay an option premium to the option seller in exchange for buying or selling underlying assets based on the Bitcoin index at a certain price at a certain time in the future. right.

 How to play Bitcoin options

Bitcoin options are mainly played in a small and broad way, mainly when the market fluctuates. For example:

The current price of Bitcoin is 8,500 US dollars. You think that Bitcoin will most likely fall in the next hour, so you open a 1-hour option and spend 4 USDT. As you expected, Bitcoin plummeted by $500 in the next hour. The system will automatically settle at the expiration of one hour. You will receive a return of $500, which is equivalent to more than a hundred times the principal return. On the contrary, if Bitcoin rises within 1 hour, you will only lose 4 USDT principal. This means that the risk is limited and the return is unlimited.

 Bitcoin options tips for newbies:

1. Adhere to light position trading

For novices, when they first start option trading, profit is not the main purpose, but to accumulate experience, become familiar with the market, start trading on a smaller scale, insist on light positions, low cost, low risk, and reduce investor pressure. It will also be smaller. For example, on the CC options platform, the most
The low transaction threshold starts at US$5, and the maximum profit for a single transaction can reach 88%, which is at least 6% higher than the profit of other platforms in the industry. It is one of the formal platforms that is more suitable for light position operations.

2. Learn to predict trends

To predict the trend of assets and improve the accuracy of bullish and bearish calls, investors must understand before making transactions what are the data, political, and economic events that will affect asset trends and options markets? For example, trade wars, non-agricultural issues, etc. that affect the world , and you need to master the usage of some technical indicators, such as moving averages, Bollinger Bands, KDJ, etc., which are relatively simple and practical.

3. Select entry time

The choice of entry time is crucial for options trading, because the price of the underlying asset at expiration determines the payout. For time selection, investors can conduct trend analysis based on daily, monthly, and annual price changes.

4. Properly hedge risks

Hedging risks is a trading skill used in many markets. Novice options can use it appropriately. For example, if an unexpected situation occurs during a bullish trading period and the downward trend is obvious, investors can consider buying put options in time, which can reduce part of the risk. risk, and even turn losses into profits.

Through the above understanding, I believe everyone has a certain understanding of Bitcoin options. In fact, Bitcoin options are like this. The profit margin is the same as Bitcoin spot calculation, except that you don’t have to pay the full price, you only need to pay a small deposit. In terms of risk, selling Bitcoin options is very close to Bitcoin futures. Sellers can profit from the premium paid by buyers of unexercised Bitcoin options.