Why is Bitcoin Options Trading Popular?
Since 2018, the so-called “crypto winter”, derivatives trading almost became the go-to choice for investors in the cryptocurrency space, because of its leverage and hedging functions. Bitcoin perpetual contracts, which have no expiry date and with high leverage, used to be the most popular crypto derivative among retail as well as institutional investors. However, as the bitcoin market is incredibly volatile, trade, that go against the market trend, will risk being liquidated. Investors are looking to minimize the risks in conjunction with amplifying the potential profits. Therefore, BTC Options Contracts comes to the stage!
How to Trade BTC Options?
Similar to futures trading, you can long or short BTC. But the main difference is that you cannot set the open price for the options contracts. In other words, a Call option (buy/long) and Put option (sell/short) are triggered at a fixed strike price so that you can know potential gains and losses beforehand. And the option contract will be automatically closed until its expiry.
Let’s check the step-by-step guide. With BTC currently trading at $7,211.69, you predict that it will decline.
- Step 1. Type in the volume of the contract.
- Step 2. Set the expiry date.
- Step 3. Click the red button to short/sell BTC.
The put option contract will expire in 2 minutes. Between the Lock Time and Expiration Time, as long as Bitcoin drops below the fixed open price of $7,211.69, you would make profits.
The fact that a call option buyer has unlimited upside, while a put option seller an unlimited downside, no forced liquidation will occur. Hence, traders have more opportunities to make up for the loss of one wrong trade by starting another trade in the opposite direction.
IE Option – the Recommended Bitcoin Options Exchange
IE Option is a cryptocurrency options exchange established in the United Kingdom. Besides Bitcoin, it also provides options trading of ETH, LTC and EOS. By making accurate trend predictions (higher or lower than the strike), you can get a maximum profit of 91%.
No KYC Required
Signup an account in IE Option, you don’t need to do KYC identification. You can easily register with email in 30 seconds.
Demo Account with 10 Bitcoins
To try options trading in IE Option, there is a demo account with 10 BTC for you. If you’ve been familiar bitcoin options trading and build up strategies and skills, you can switch to live mode and earn real bitcoins.
100% Bonus for First Deposit
All users are eligible to get up to 100% deposit bonus. As long as your deposit is larger than 0.01 BTC, you can enjoy a deposit bonus. For example, if you deposit 2 BTC in, you will get 4 BTC in total.
Give it a shot to IE Option and make profits on options trading easily. Join IE Option now to claim 10 Free BTC welcome bonus in a demo account. Android and iOS apps are available for you to make successful trades everywhere!