“Options or Futures & Swap, Choice You May Make for Your Bitcoin”
It was surely a good idea for experienced traders to do leverage trading when the market fluctuates. As we all know, BitMEX, one of the best Futures & Swap providers, supports the leverage up to 100X, and its risky control and liquidity is also the top level from the perspective of the whole industry. Take a step back, HuobiDM and OKEX are also competing against the others to occupy the rest of the market.
But did you ever consider that why Futures & Swap still cannot occupy the market even it had been slumped for several times?
We have to admit that Futures & Swap trading is a leverage trading which may bring users more profit than spot trading. However, with the higher profit, the risk and budget are also much higher than spot trading. To complete the whole trading in futures & Swap, users need to consider the fees and the margin, which will increase the investment so that they can ensure the orders will not be forced into liquidation when the market fluctuates. Even then, the orders still are possibly facing a situation that is liquidated. What is more, when users start opening the orders, in case the market upheavals happen, time is required for them to watch out for the market.
So, even we know that Futures & Swap bring a high leverage profit no matter the bullish or bearish market, it still relatively costs us much more budget and time to complete the transactions.
For here, I will take BitOffer Bitcoin Options as an example to do a comparison.
First, we need to know what Options Trading is: “An option is a contract that allows (but doesn’t require) an investor to buy or sell an underlying instrument like a security, ETF or even index at a predetermined price over a certain period of time. Buying and selling options are done on the options market, which trades contracts based on securities.”
1. BitOffer Bitcoin Options does not require any fees or margins. In this point, BitOffer Bitcoin Options reduces the initial investment that users should pay.
2. As we all know, BitMEX and OKEX are both able to support 100X leverage, but with the margins, you have to deposit a big amount so that you can ensure you will not be going to face the liquidation on each transaction. However, BitOffer Bitcoin Options supports 1,000X leverage without any margins, which means BitOffer Bitcoin Options is much more profitable than the Futures & Swap we saw in the market.
3. 2 mins, 5mins, 15 mins, 1 hour and 1 day is the selections of the length of the contracts which are available on BitOffer Bitcoin Options. It is far more flexible than others, which means you don’t have to pay too much attention to the market as before. And the most important thing is that with the function of price alert on BitOffer APP, you will never miss any opportunity when the market starts fluctuating.
4. Many users will be afraid of the risky of BitOffer Bitcoin Options. I have to tell you that unlike Futures & Swap or binary options, BitOffer Bitcoin Options is much more profitable but not so risky as them. When you do a wrong prediction on Futures & Swap, you will need to input more and more margins to ensure your order safe. It will cost a high amount of budget. But when it has to be forced into liquidation, you will lose all the funds you have put into the transaction. If you choose BitOffer Bitcoin Options, during the contract period you choose, it will not be liquidated no matter how the market fluctuates, and even you do a wrong prediction, the largest possible loss will only be the principal you invest or even less.
Published at Wed, 13 Nov 2019 08:55:44 +0000
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