Binance Options Trading

in #cryptolast year

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I have always been into stocks and shares and I am interested to see how crypto does derivatives such as futures, swaps and option trading, Binance have made option trading available in their mobile app. I always like trading in options as the gains can be incredible but the initial outlay is small. I decided to give it a go and transferred a small amount 0.01 bitcoin to my futures wallet.
Options are divided into call and put options. Call is when you think the price is going to rise and put options are when you think the price will drop.
Say you want an option to buy 1 bitcoin at €7000. The price of buying that option is 0.07 bitcoin. So if bitcoin rises to €8000 then you would obviously exercise that option for €7000 and profiting from the €1000 difference minus the option premium €493.83. 500 quid profit right there. If the price of bitcoin goes down then you will only lose the option value of 0.07 bitcoin.
The price of the option varies. You currently can only trade BTC/TUSD. And there are only 5 time variations at the moment
10 minute
30 minute
1 hour
8 hours
1 day.
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I usually go for the day option as if I think bitcoin is going to increase or decrease then I want a longer window as possible. You do have an option of cashing out on whatever price you like but remember that the you need to cover the price of the option before you do this.
I have traded 5 trades with Binance so far using options. I have profited 3 out of 5 times. If you hit can forecast a major crash or price rise in bitcoin then that is the time to do it as the profits you can make for the outlay is pretty good. If bitcoin is a fluctuating smoothly then option trading is not the game to be in because you will only lose. I predict coming up to the halving there is some big profits to be made here. If you get a prediction correct and you follow the fib support and resistance levels then you could make quite a bit of money here. I have created an excel sheet to see how I get on over a month. Put options are my cup of tea as I always have in my mind that Bitcoin crashes quite a bit more than it does rockets. If I have a put option set up under the right circumstances I could end up earning a whole bitcoin for a minor outlay.
The downsides are it is more of a gamble

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