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Title: How to trade under this high volatility Post by: xinxi on October 06, 2014, 04:35:05 PM Directly trading BTC/USD is quite risky at this moment. Instead, you can trade volatility.
Seriously? How can the volatility be traded? Yes, you can trade volatility using options. For example, if BTC/USD is now 400, and you know the volatility will be high, you can simultaneously buy a CALL option with strike price equal to 420 and a PUT option 380. Then you will be able to make profit no matter which direction BTC/USD goes in, because if it goes above 420, the CALL option will win, and if the price goes below 380, the PUT option will win. For more information, you can have a look at my newly opened bitcoin options exchange platform https://coinut.com. We are just open, so the liquidity may not be very good at this moment. But you know, a new market always means good chances for making profit if you understand how it works quickly. If you want to become a market maker, please contact me, and we will have some special offer for you. Title: Re: How to trade under this high volatility Post by: bluemeanie1 on October 17, 2014, 09:51:19 PM BTC volatility is actually more volatile than BTC. (http://blog.bluemeanie.net/2014/10/bitcoin-volatility-index-more-volatile.html)
Title: Re: How to trade under this high volatility Post by: wangxinxi on October 18, 2014, 03:16:24 AM Can you elaborate?
Title: Re: How to trade under this high volatility Post by: BitCoinPokerBro on October 18, 2014, 04:44:28 AM this doesn't make sense as far as traditional options go so maybe it works differently?
Title: Re: How to trade under this high volatility Post by: wangxinxi on October 18, 2014, 05:35:16 AM this doesn't make sense as far as traditional options go so maybe it works differently? May I know which part does not make sense to you? Title: Re: How to trade under this high volatility Post by: FattyMcButterpants on October 18, 2014, 03:47:18 PM BTC volatility is actually more volatile than BTC. (http://blog.bluemeanie.net/2014/10/bitcoin-volatility-index-more-volatile.html) This is expected. Volatility is a derivative of price and derivatives by definition have larger swings then the underlying security they are attempting to mimic. Title: Re: How to trade under this high volatility Post by: wangxinxi on October 18, 2014, 04:19:45 PM BTC volatility is actually more volatile than BTC. (http://blog.bluemeanie.net/2014/10/bitcoin-volatility-index-more-volatile.html) This is expected. Volatility is a derivative of price and derivatives by definition have larger swings then the underlying security they are attempting to mimic. Volatility is computed directly based on the log of price ticks instead of price ticks. Volatility is quite volatile, but it's more regular than price. Title: Re: How to trade under this high volatility Post by: master5 on October 18, 2014, 07:15:34 PM In the case of high volatility you can use a method called "Scalping". But this method is a high-risked so I do not recommend using it to newbies. http://en.wikipedia.org/wiki/Scalping_(trading)
Title: Re: How to trade under this high volatility Post by: worle1bm on October 19, 2014, 06:53:12 PM In the case of high volatility you can use a method called "Scalping". But this method is a high-risked so I do not recommend using it to newbies. http://en.wikipedia.org/wiki/Scalping_(trading) The second parentheses in your link is messed up. Thanks for the link, anyway! |