What is the meaning of bitcoin option exercise

1. For example, real options: the underlying asset price & gt; Call option with exercise price, or underlying asset price & lt; Put option at exercise price (if underlying asset price & gt& gt; Call option with exercise price, or underlying asset price & lt& lt; Put option with exercise price is called extreme real option

2.

The so-called option is to predict the future rise and fall. It is not difficult to understand, but it has obvious advantages over futures contracts. For example, the price of bitcoin futures contract fluctuates a lot. If you can't control it well, you will burst every minute, and you need margin and handling charges

but bitcoin options are totally different, just like bitcoin options in bitofer, which have neither margin nor service charge, let alone burst positions, and simply predict the rise and fall. The time cycle is diversified, including 2 minutes, 5 minutes, 15 minutes, 1 hour and 1 day. You can play at any time. You can make full use of the fragmented time and have higher flexibility. If you don't keep a real-time eye on the contract, it's easy to blow up the position if you are careless

The last is return. Sometimes options are much higher than contracts. Why do you say that? The contract basically depends on leverage. If you have a very low leverage ratio, it will have no effect. For example, if the current price of bitcoin is 10000 points, you think it will fall in the next five minutes. Therefore, you open a five minute put option and consume five usdts

as expected, bitcoin has dropped 500 points in 5 minutes. After 5 minutes settlement, you get 500 usdts, which is equivalent to 100 times leverage return compared with the principal. This is that we think that the bitbuffer option is more in line with the current trend, and it is expected to go online in mid October

3. Today, let's talk about what is bitcoin option

for example, when you go to buy a house, the developer will ask you to pay some deposit to get the qualification of buying a house at a preferential price

at that time, if the house price falls, you can choose not to buy it, and you will lose the deposit at most

but if the house price rises, you will earn the price difference, which is the option, and the deposit is the royalty in the option

then, How to play bitcoin options<

take bitcoin option launched by bitoffer in the world as an example

for example, if the current price of bitcoin is US $10000, you think it will go up in the next week

so you buy a 7-day call option and spend US $100 in royalty

seven days later, bitcoin goes up to US $12000 and you earn US $2000 when it matures

seven days later, If bitcoin falls to $8000, you will only lose $100 in royalty.

this is the advantage of option "unlimited return and limited risk"

4. For example, when the price of bitcoin is $7000, you buy a call option for a week, and you pay a deposit of $200 first

sure enough, the bitcoin price will expire in a week and rise to $7700. At this time, you need to make up the balance of $6800, because you are a call option. Therefore, the exercise price will be based on the price a week ago and the total cost (200 + 6800 = $7000), but now the latest price is $7700, 7700-7000 = 700, so you earn $700

the bitcoin option launched by bitoffer does not need to exercise, and it is also the only option in the world that does not need to exercise. Similarly, it costs $200 to buy a one week call option. A week later, bitcoin rises to $7700. At this time, the option matures, and the system automatically settles. There is no need to exercise the option. You get a profit of $700.

5. Don't put options and futures in a small dish. It's better to make futures bigger

6. There is no advantage. Now bitcoin is a controversial thing, and China does not recognize it.

7. The exercise price at maturity, for example, the exercise price of bitcoin call options is 8000 points. When the bitcoin price index is higher than 8000 points, the exercise will be carried out, otherwise the exercise will not be carried out

8. Option; Option contract, also known as option, is a derivative financial instrument based on futures
exercise means that the warrant holder requires the issuer to perform its obligations in accordance with the agreed time, price and manner
in essence, option is to price the rights and obligations separately in the financial field, so that the assignee of the right can exercise his rights within a specified time for whether to trade, while the obligor must perform. In the transaction of options, the party who purchases the options is called the buyer, while the party who sells the options is called the seller; The buyer is the assignee of the right, while the seller is the obligor who must perform the buyer's right.