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October 14, 2020, 09:04:41 AM |
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How to hedge for future loss?
Keep to buy options whether you buy long or short for future. For example, The price of Bitcoin is $10,000 1.you invest $500 to buy longs with 20 times leverage 2.At the same time, buy 2 put options(cost $60 ) on bitoffer exchange Option period: 4hours 1 option profit =1BTC spot profit
After 4hours, there will be 2 results. 1.Bitcoin rose by $200, change is 2% Future: spent $5,00 and earned $200 Option: spent $60 and lost $60 So the net profit is 200-60=$140
2 .Bitcoin dropped by $200, change is 2% Future: spent $5,00 and lost $200 Option: spent $60 and earned $400 So the net profit is 400-200-60=$140
Learn to how to calculate our profit so that we can control the risk.
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