What is options trading?
When you are investing in the crypto market, you may come across many trading ways. Normally, we use spot or margin trading on the crypto exchanges. However, there is also an availability of options trading. This way of trading allows the users to buy or sell underlying assets for a certain price before the expiration. This is also to mention that traders have rights to sell or buy but not the obligation. Moreover, this trading method allows traders to optimize their trades against the crypto prices.
How can I get into Options Trading?
Well, this is actually a leveraged bet over the future cryptocurrency prices. So, you hold currency crypto for a certain period to buy or sell. Many largest crypto exchanges offer this facility to hold digital assets and exercise their options before the expiry date. However, here I am going to tell you how you can do this on the Binance crypto exchange that is the world’s biggest and best exchange. It is also to mention that Binance offers this Future trading option for the following pairs.
How to do future trading on Binance?
To trade on Binance using the using options trading, follow the following steps.
- First of all, create your account on Binance by clicking here
- Then verify all your details i.e personal as well as credentials
- Now buy USDT using your debit/credit card or P2P option
- Then go to Binance Future and click on the Options
- Choose the currency quantity for call (buying) and Put (selling)
- Choose your expiry date i.e 10 min, 30 min, 1 day
Moreover, Binance uses American-style options and offers short-term contracts.
Are options a good trading method?
Yes, this would be my answer because this trading method reduces the risk and fetches you more profit. However, you should have a piece of good knowledge to use it. Therefore, I would recommend joining a crypto community to learn all the basics of crypto trading as well as trading methods and crypto tips to earn effectively.
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