Explain crypto options to me

[capoeira]

So I was learning a little about the "world's largest crypto options, and futures exchange" how they call themselves, and even speed-read their tutorial about options.

I do understand the basics of options trading, but there is one thing I still don't understand: why options?
"limited risk" can't be the main reason to trade options. I get that stop losses aren't the most secure guarantee that your risk is limited, but they do work in most cases.
for "leverage" you don't need options either.

what is the main advantage of trading options? or would it be the main use case?
someone experienced with them could give me a hint?

[BitMaxz]

I don't get what you are trying to point out because you mention futures and leverage and stop loss.

Are you talking about the Binary option? But I never heard of a Binary option that has stopped loss.
If I'm right then the Binary option only has two options up or down and this is very risky because if you lose the total amount you set is fully deducted from your total capital minus the fee if you predicted it wrong that's totally different from futures or leverage trading because there's no stop loss in binary option it is likely just yes or no and it is totally a gamble.

[capoeira]

I don't get what you are trying to point out because you mention futures and leverage and stop loss.

Are you talking about the Binary option? But I never heard of a Binary option that has stopped loss.
If I'm right then the Binary option only has two options up or down and this is very risky because if you lose the total amount you set is fully deducted from your total capital minus the fee if you predicted it wrong that's totally different from futures or leverage trading because there's no stop loss in binary option it is likely just yes or no and it is totally a gamble.

No, not binary options, regular options.
people say they are less risky cause you can only lose the premium. That's why I mentioned stop losses as these provide protection without the use of options.

[Julien_Olynpic]

Options are less risky than classic futures in some cases. But if you are the creator of a classic option on regulated exchanges, then you could have a fairly large loss. On cryptocurrency exchanges, options are slightly different from classic ones due to the fact that here users are often anonymous.
     But if you do not create options, but only trade them, then your loss is limited only by the cost of your option, that is, the premium. However, often the amount you spend on an option would be more logical to spend on buying a spot asset. Why? Because in the case of a spot asset, complete depreciation never occurs. You can hold a spot asset theoretically indefinitely. The option has a temporary decay and most often you will have a loss on it.

[Wind_FURY]

So I was learning a little about the "world's largest crypto options, and futures exchange" how they call themselves, and even speed-read their tutorial about options.

I do understand the basics of options trading, but there is one thing I still don't understand: why options?
"limited risk" can't be the main reason to trade options. I get that stop losses aren't the most secure guarantee that your risk is limited, but they do work in most cases.
for "leverage" you don't need options either.

what is the main advantage of trading options? or would it be the main use case?
someone experienced with them could give me a hint?

I don't truly understand options trading either, but I believe there are hedging strategies that an experienced trader could do with options which could add and be supplementary to his/her spot or leveraged trades. There are also basic put and call options strategies in this article, https://www.investopedia.com/trading/options-strategies/

Options trading is something that's built more like a casino game.

Bybit has a course for options trading if you want to truly learn "why", https://learn.bybit.com/bybit-options-course/

[Lakai01]

"limited risk" can't be the main reason to trade options

It depends on what "limited risk" refers to. Limited risk in comparison to equities can be correct (depending on the market situation), and of course also in comparison to high-risk trading with leverage.

In comparison to standard crypto trading, however, I almost doubt it, as in addition to the exchange fees, there are also fees for the options themselves. So you have to get out much better with the options trades to achieve a comparable profit.

[bettercrypto]

So I was learning a little about the "world's largest crypto options, and futures exchange" how they call themselves, and even speed-read their tutorial about options.

I do understand the basics of options trading, but there is one thing I still don't understand: why options?
"limited risk" can't be the main reason to trade options. I get that stop losses aren't the most secure guarantee that your risk is limited, but they do work in most cases.
for "leverage" you don't need options either.

what is the main advantage of trading options? or would it be the main use case?
someone experienced with them could give me a hint?

Anything I read or hear about binary options seems to be connected to the multilevel marketing (MLM) system, which raises an alarm bell for me right away. Furthermore, nearly all of the information I discovered was brief.

In case you're interested in trading options in a literal sense, you can sell an option contract to make money, which the seller can demand from the buyer up front. In comparison to outright share purchases, options contracts give you leverage profits by enabling you to control a higher number of shares with a lower initial outlay. If the market swings to your advantage, this leverage might increase your possible winnings.

[capoeira]

I still don't see the point.
Who specifically will opt for buying options and in what situation?
We can limit risk and leverage without options.

[Wind_FURY]

I still don't see the point.

Who specifically will opt for buying options and in what situation?

We can limit risk and leverage without options.

I tried learning about it by going through Bybit's course during COVID-19 lockdowns. Personally, for me it's useless because I'm a mere pleb with a small amount capital for gambling. It would be laughable but shitcoinery with Runes or BRC-20 might be more suitable for a pleb. The Options market is a kind of casino that is reserved for sophisticated whales with a large amount of capital to deploy.

[SVILL]

When trading leverage

You need to save on fees.

Fee discount and

Sign up for an exchange where you can get your commission back.

fee discount and

You may receive a portion of the fees used.

Please refer to the link

https://linktr.ee/CryptoPayback

[capoeira]

I still don't see the point.

Who specifically will opt for buying options and in what situation?

We can limit risk and leverage without options.

I tried learning about it by going through Bybit's course during COVID-19 lockdowns. Personally, for me it's useless because I'm a mere pleb with a small amount capital for gambling. It would be laughable but shitcoinery with Runes or BRC-20 might be more suitable for a pleb. The Options market is a kind of casino that is reserved for sophisticated whales with a large amount of capital to deploy.

It seems like you can't talk about options without people having binary options in mind. I don't think real options are more of a gamble than any other trade.

[Wind_FURY]

I still don't see the point.

Who specifically will opt for buying options and in what situation?

We can limit risk and leverage without options.

I tried learning about it by going through Bybit's course during COVID-19 lockdowns. Personally, for me it's useless because I'm a mere pleb with a small amount capital for gambling. It would be laughable but shitcoinery with Runes or BRC-20 might be more suitable for a pleb. The Options market is a kind of casino that is reserved for sophisticated whales with a large amount of capital to deploy.

It seems like you can't talk about options without people having binary options in mind. [b)I don't think real options are more of a gamble than any other trade[/b].

Binary Options actually IS the casino game, and it's probably negative-sum because the pay out is less than 50/50 for a 50/50 "bet", like regular dice games. Real Options is more sophisticated and require strategy, https://www.investopedia.com/trading/options-strategies/

If a regular Hi-Lo Dice game is comparable to Binary Options, then Regular Options is comparable to Craps, a dice game that requires some strategy.

[EarnOnVictor]

So I was learning a little about the "world's largest crypto options, and futures exchange" how they call themselves, and even speed-read their tutorial about options.

Options trading is not a new name in the world of the financial market, however, these days, they've added cryptocurrency to it, but the options trading I've seen with crypto exchanges and gambling sites are deviations from the traditional ways, which makes it more difficult for people as they've wired it in the favour of the house/exchanges and have increased the difficulties of what was initially difficult to predict (more issue).

Now, the main options trading was planned in a way where you choose the direction a market will follow at a certain time. If you choose a buy, you Call and if you choose a sell, you Put. Those are the terms, but mind you, you are also betting against the time which makes it more difficult than trading that you are just trading without the stress of the duration expiry. Take for instance, Bitcoin is at $70,000 and you choose a Call option for 1 hour. After 1 hour of the bet, if Bitcoin's price is above $70,000, you win the bet, but if it is below that level, you lose the bet. That is the principle, and it is as simple as that until they are making it more difficult.

I do understand the basics of options trading, but there is one thing I still don't understand: why options?
"limited risk" can't be the main reason to trade options. I get that stop losses aren't the most secure guarantee that your risk is limited, but they do work in most cases.
for "leverage" you don't need options either.

Oh, I never knew you knew the basics, I wouldn't have wasted my time explaining as above. Regardless, this is not a kind of trading like the regular one, it is more of a betting that links trading with time, you are trying to get the two (right direction and within a correct period) predicted accurately.

For this, it is better called Option trading than mere trading since it gives you the option of time in addition and not only the Call and Put (direction) option as in mere trading.

what is the main advantage of trading options? or would it be the main use case?
someone experienced with them could give me a hint?

If you like betting, you will like option trading, although it is a lot easier and more reasonable than gambling in casinos. Once you know how to speculate well and use your instincts, you have a better chance of success. It is also a better chance to multiply your money pretty fast than trading in which you will have to be very patient for the trade to be positive. You can have that winning within seconds on some options trading platforms.

[goaldigger]

I still don't see the point.
Who specifically will opt for buying options and in what situation?
We can limit risk and leverage without options.

This can also be considered as gambling because of its risk and because of the nature of options. If you don’t know how to execute this well better not to try because the house edge here are very high and you might not be able to make profit in time. We can always limit the risk but choosing the right strategy and trading options are not for everybody.

[MRY]

I still don't see the point.
Who specifically will opt for buying options and in what situation?
We can limit risk and leverage without options.

This can also be considered as gambling because of its risk and because of the nature of options. If you don’t know how to execute this well better not to try because the house edge here are very high and you might not be able to make profit in time. We can always limit the risk but choosing the right strategy and trading options are not for everybody.

In the world of gambling, for those who dare to take risks, there will be an opportunity to make a lot of profit. Therefore, when there is a risk in front of us, we must have the courage to face it and never be afraid of the risks that exist.

[capoeira]

ok guys, finally foud a guy that can really explain it:

https://www.youtube.com/watch?v=lUv27513cfU

you are basically trading unrealistic implied volatility,
and I was actually right because with perfect option prices there is nothing to gain

also, be sure to watch a (not so) funny reality at 15:37 when you don't watch it all.