How to trade bitcoin futures and options with Deribit.
Deribit is an Amsterdam based crypto derivatives exchange that allows you to trade futures and options on bitcoin. Founded in 2016, deribit was the first exchange ever to allow options trading on bitcoin. They are currently the market leading bitcoin options exchange with the highest liquidity and volumes.
What are the benefits from options and futures?
- They make it possible to go both long and short in the market. This gives you great flexibility to hedge the risks of your positions in various ways.
- By cost base reduction you can leverage positions or manage the risk better. With options or futures, you can still be involved in the same large move but risk less if the market moves against you by purchasing a put/call or trading a spread. An options buyer is only risking the amount paid for the trade, known as the premium. The premium is generally much cheaper than buying the whole underlying asset.
Here is my review about Binance and Bitfinex:
https://steemit.com/cryptocurrency/@niel96/fkextygqq
Sounds very risky plus the typical risk of using exchanges. There's a place for this kind of trading, but it might not be the time now. I'd rather be the exchange selling the options. 20$ calls are opening for 4,000 breakeven is 6,000. 20$ puts are 4,000 breakeven is 2,500. Close 07/07/19 Beat that deribit.
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"I'd rather be the exchange selling the options."
Options are never sold by an exchange. You can sell options yourself for the premium when you have a margin account. It's called writing options.
So your statement makes no sense. Have you ever traded options before? It doesn't seem like it. You should know that.