Explain crypto options to me
Explain crypto options to me
So I was learning a little about the “world’s largest crypto options, and futures exchange” how they call themselves, and even speed-read their tutorial about options.
I do understand the basics of options trading, but there is one thing I still don’t understand: why options?
“limited risk” can’t be the main reason to trade options. I get that stop losses aren’t the most secure guarantee that your risk is limited, but they do work in most cases.
for “leverage” you don’t need options either.
what is the main advantage of trading options? or would it be the main use case?
someone experienced with them could give me a hint?
I don’t get what you are trying to point out because you mention futures and leverage and stop loss.
Are you talking about the Binary option? But I never heard of a Binary option that has stopped loss.
If I’m right then the Binary option only has two options up or down and this is very risky because if you lose the total amount you set is fully deducted from your total capital minus the fee if you predicted it wrong that’s totally different from futures or leverage trading because there’s no stop loss in binary option it is likely just yes or no and it is totally a gamble.