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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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