Bitcoin Forum

Recently, a new generation of financial derivatives platform Bitoffer exchange officially launched options, a bitcoin options only less than $5, most of the users is impatient, eager to experience it. The most important feature of this product is whether the bull market or bear market, there is an opportunity to gain as much as 1000 times leverage.

In the meantime need no deposit, no handling fee, profit is high and risk is controllable at the same time, really attractive. Bitoffer’s chief analyst, Lucian, said the aim of the bitcoin options business is to provide investors with precise hedging and additional trading tools, as well as to enrich the market.

Bitoffer option provides 4 cycles, such as 2 minutes, 5 minutes, 15 minutes and 1 hour. Users need to select the option cycle when placing an order. For example, when the current price of bitcoin is $8,000, after analysis, you think that bitcoin is likely to fall in the next hour, so you open a one-hour put option, which costs $5 (USDT).

Sure enough, within the next hour after you issue order, bitcoin drops $500. The 1-hour expiration date will be automatically settled by the system without manual operation, and you will get a profit of $500 because you issue a put option.
Considering that some friends may not be familiar with the above case, I made a comparison between Bitoffer option and spot, which seems relatively intuitive.

The difference between option and spot is as follows:

Bitcoin type Option: 1. Purchasing Cost 4USD
2. "Expect to be bullish, buy a call order Expect to be bearish, buy a put order"
3. Benefits and risks: Bitcoin went from 8,000 to 8,500 dollars Buy call option yields $500, Loss of principal ($4). Bitcoin dropped from 8,000 to $7,500 Buy put option yields $500 Loss of principal ($4)


Bitcoin type Spot: 1. Purchasing Cost 8000USD
2. Can only buy a rise
3. Benefits and risks: Bitcoin dropped from 8,000 to $7,500 $500 loss."

A question Option and Contract is different tool right? ???

Different, Option is formal financial instruments

I almost try learning this type trading but something I don't want to mention here stops discouraged me. People should be more concerned about the advantages and disadvantages of this sort of things but very few care. I feel the long-term disadvantage outweigh the short-term gains... so I dumped the idea. I guess everyone "drunk" now and having fun.

So you're talking here about https://www.bitoffer.com/?

Spot or Option i do consider for these two things to be the same in general where it do only differs
on the amount that you can possibly risk one which the other side is somewhat like its leveraged but the
total loss would be the original principal.

Well.. I think that trading Spot is great too haha On a more serious note options are great especially for hedging, but I know traders that only trade options because it is much more convenient and they can't sleep at night peacefully. But IMO the real masters of trading are able to combine spot trading with derivatives. This way they develop multilaterally and can exponentially increase their gains.  Deribit offers options as well and I have recently heard that CME also offers a similar product.

Be careful though and don't trade options until you don't understand them completely. They can liquidate your account just as easy as trading spot on leverage.

I'd rather go with spot that options tbh. I have much more control with it and am rather experienced with it already compared with Options. I've tried options and I didn't really find anything different with it when compared to spot and really, the risk is almost about the same. It's just a matter of when you'll encounter the risk itself. If in the future, I need to reduce my time with trading, associating myself with options then maybe a good choice but I don't think that would happen in the near future.