BTC derivatives

1. Because the digital money market has not been regulated

2. In the transaction of option contract, the buyer only needs to pay the equity, but does not need to pay the margin, while the seller requires to pay the margin

3. Options, futures and ETFs are derivatives
at present, bitoffer only has options and ETFs, and futures will be available soon

4.

Similar to futures contract, it is a trading method proposed by bitstar

the leverage of bitcoin virtual contract is shown as the leverage stability of the revenue level of legal currency: if you invest US $100, the revenue you can get = US $100 * the rise and fall of bitcoin * the fixed leverage ratio

assuming that the current price is 500usd / BTC, an investor can buy a BTC at the current price, and the principal is 500usd. At this time, the investor can make 50 more BTC virtual contracts

at this time, if the price of BTC rises to US $750, or 50%, the investor's contract income is 3.3333 BTCs, which can be sold at the current price to get us $2500, and the income is five times of the principal investment

bitcoin futures provided by bitcoin exchanges are usually traded in bitcoin. Futures is opposite to spot. Spot is a commodity that can be paid and delivered at the same time. In fact, futures is not "goods", but an agreement (contract) - futures contract that promises to deliver "goods" (subject matter) at a future time

extended data:

futures contract is an agreement that the buyer agrees to receive certain assets at a specific price after a specified period of time, and the Seller agrees to deliver certain assets at a specific price after a specified period of time. The price that both parties agree to use in future trading is called futures price

the specified date on which both parties must conct transactions in the future is called settlement date or delivery date. The assets agreed to be exchanged by both parties are called "subject matter". If an investor gains a position in the market by buying a futures contract (i.e. agreeing to buy at a future date), it is called long position or long in futures

On the contrary, if the position obtained by investors is to sell the futures contract (i.e. bear the contract responsibility to sell in the future), they are short positions or short on the futures

5. 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

6. The most popular is bitcoin. Bitcoin has been popular for a long time. It can be cashed and converted into the currency of most countries. Users can use bitcoin to buy some virtual items, such as clothes, hats and equipment in online games. As long as someone accepts it, they can also use bitcoin to buy real-life items
in China, the other one I know is the network mutual aid blockchain, which represents the platform of concentric mutual aid. Blockchain technology is used to solve the shortcomings of the network mutual aid instry. At present, blockchain is also very popular in the network mutual aid instry.

7. In the transaction of option contract, the buyer only needs to pay the equity, but does not need to pay the margin, while the seller requires to pay the margin.

8. Bitcoin contract is futures, futures and options are essentially a derivative of bitcoin, but also spot hedging tools! But generally speaking, options are better than futures. We can compare them according to several points
first of all, if the current price of bitcoin is $8000, when bitcoin rises from $8000 to $8500
1. Buy up spot and earn $500
2. Buy up options and earn $500
3. How can futures earn $500
for example, you can earn $500 only by using $500 principal, opening 20 times leverage and increasing by 5%
with the same return, we find that the principal of option investment is the lowest, and the risk is also the lowest< In my opinion, the BTC option launched by bitoffer will have great advantages, such as no margin and no handling charge.

9. Bitofer is really attractive. If it was me, I would not hesitate to choose options< For example, the current price of bitcoin is US $8000.

1. To buy bitcoin at the same time with spot and option, we need us $8000 (only can buy up)
2. To buy bitcoin with option, we need us $4 (buy up, buy down freely)
3. Based on the cost calculation, we can choose to buy bitcoin with option, It has been equivalent to 2000 times leverage

2. In terms of income, bitcoin has risen from US $8000 to US $8500
1. In terms of spot, one bitcoin has earned US $500
2. Options and one bitcoin option have earned US $500
3. The income from both is the same

3. In terms of risk, bitcoin has fallen from US $8000 to US $7500
1. In terms of spot, A bitcoin loss of $500
2. Options, a bitcoin option loss of $4
3. Spot risk is far greater than options, the biggest risk of options is the loss of option principal (US $4)

4. Other related costs
1. Spot, need handling fee
2. Options, no margin, no handling fee