Digital currency American option

1. Digital options, also known as fixed income options or non all or nothing options. Based on whether the closing price of an asset (such as currency, stock or commodity like gold) is lower or higher than the execution price within a specified period of time (such as one hour in the future), it is decided whether to obtain income. Digital option is a simplified but exciting financial market trading tool. If the prediction is correct, we will win the transaction and earn a considerable return on investment - usually 70% - 81% of the investment amount.

2. Cash delivery, there is no physical delivery of the digital asset index, using cash netting method for delivery

3. It is a certain digital asset price index (such as BTC spot price index)

4. 1. digital currency contract, also known as futures contract. In short, it's business in the future. A standardized contract uniformly formulated by the exchange to deliver a certain quantity and quality at a specific time and place in the future. The vast majority of users use the margin system of futures contracts, add 10 or even 20 times leverage to leverage big funds, and then use the index fluctuation to buy low and sell high trading contracts, so as to earn double profits< 2. Perpetual contracts are derivatives. From the perspective of trading, it is similar to the traditional futures contract, but there are some differences. First of all, it has no maturity or settlement date. The perpetual swap contract is similar to a margin spot market, so its trading price is close to the underlying reference index price, which is different from the futures contract. Due to the basis, the trading price difference of the futures contract may be significantly different. Secondly, the main mechanism of anchoring spot price is capital cost< At present, rolling spot futures is the main form of perpetual contracts. Rolling contract is a kind of futures contract settled on the same day and automatically extended. Profit and loss are settled on each trading day, and the contract position held by traders will be automatically extended at the end of the trading day. In addition, the cash flow of assets will be exchanged, and the long investors will pay the capital cost to the short investors to compensate the capital cost of the short investors
3. Option contract is a kind of agreement, which can give traders the right to buy or sell assets at a predetermined price before a specific date or on a specific date. Option contracts are trading derivatives that can be based on a wide range of underlying assets, including stocks and cryptocurrencies. These contracts may also come from information such as financial indicators. Generally, option contracts are used to hedge the risk of existing positions and speculative transactions.

5. At the same time as the contract, the current digital asset options are divided into weekly, Bi weekly and quarterly options

6. The option contract is a one-way contract. After paying the equity, the buyer of the option obtains the right to perform or give up the contract, and does not have to undertake the obligation.

7. European option is to exercise the right on the expiration date stipulated in the option contract

8. Not reliable, fraud platform, registration to send how much money also in vain, also can't run to your pocket!

9. American option contracts can be executed at any time before or on the maturity date, and the settlement date is one or two days after the performance date. Most American option contracts allow the holder to perform at any time between the trading date and the performance date, but some contracts stipulate a relatively short period of time, such as "two weeks before the maturity date".

10.

Now the popular digital currency futures is bitcoin futures. On December 11, 2017, Beijing time, CBOE launched the bitcoin futures XBT, and the market reaction was hot, triggering the circuit breaker mechanism many times. CME of Chicago Mercantile Exchange launched bitcoin futures BTC on December 18, 2017, which brought about great fluctuation

the two major bitcoin futures procts have the following similarities and differences, which are worth noting:

1. XBT unit is 1 bitcoin, BTC is 5 bitcoins

The minimum price change: XBT is $10 / bitcoin, BTC is $5 / bitcoin

XBT trading time is from 7:00 on Monday to 6:00 on Saturday, Beijing time; BCT trading time is from 7:00 on Monday to 4:15 on Saturday, Beijing time

4. The position limit was 5000

Price circuit breaker mechanism: XBT price fluctuates more than 10% of the previous day's closing price, trading is suspended for 2 minutes, more than 20%, trading is suspended for 5 minutes; The BTC price fluctuates more than 7% or 13% of the closing price of the previous day, triggering the circuit breaker mechanism. The specific suspension time has not been disclosed. If it exceeds 20%, the trading will stop

XBT requires 44% initial margin, which is about 2 times leverage; BTC Requires 35% of the initial margin, which is about 3 times the leverage. It is worth noting that both exchanges have indicated that the margin amount can be adjusted according to the actual situation