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Topic: Crypto volatile again, Whats stopping you from trying Options Trading? - page 2. (Read 894 times)
November 19, 2019, 08:09:21 PM
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November 13, 2019, 11:30:02 PM
The reason why most people don't trade options is because it's very difficult to make money on. And the reason why is the same as people who lose money trading options on the stock market. It's because of the time factor.
It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
Well, With Options, Its not always about making money. It can be about saving money while utilizing options as an Insurance for a short or a long term by paying a small premium(As an alternative to shorting which is dangerous for the market). There is variable date that you can set depending on your preference as well. Now we have also introduced Quarterly and Half-Yearly Options available for BTC and ETH for all the perma-Bulls as well as Bears. Do check it out. It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
It's still the same idea as leverage trading. The difference is just your position has a lock-in period and you can't limit your loss once you already placed it. There's an advantage and disadvantage for both trading type.
I prefer more leverage trading because I can stop loss if ever a saw variance on the chart of the crypto that I have a position. It's hard to predict what will be the situation of the price in "X" days for crypto, It's just like trading with just luck with no fundamental analysis. I'm not discouraging options trading users. I'm just saying that leveraging trading is more fit to my trading style.
November 13, 2019, 11:12:49 PM
I would rather not gamble on it. I would instead focus on HODLing and quick spot trading every now and then. Options trading is hard in cryptocurrency due to its highly unpredictable price movements. At least in quick spot tradings, you are only to analyze the prices in the next few days or week at most.
November 13, 2019, 10:53:44 PM
The reason why most people don't trade options is because it's very difficult to make money on. And the reason why is the same as people who lose money trading options on the stock market. It's because of the time factor.
It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
Well, With Options, Its not always about making money. It can be about saving money while utilizing options as an Insurance for a short or a long term by paying a small premium(As an alternative to shorting which is dangerous for the market). There is variable date that you can set depending on your preference as well. Now we have also introduced Quarterly and Half-Yearly Options available for BTC and ETH for all the perma-Bulls as well as Bears. Do check it out. It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
November 09, 2019, 01:39:45 AM
The reason why most people don't trade options is because it's very difficult to make money on. And the reason why is the same as people who lose money trading options on the stock market. It's because of the time factor.
It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
It's already difficult predicting at what price will there be a movement and that's why most traders struggle to make any money in the spot markets. While the options market you need to be correct on what price there will be a significant movement and also "when" and that is what makes it difficult.
There is a decay factor and every day the option loses a premium even if the price stays the same. This is why it's difficult trading the front month options on the stock markets because usually the implied volatility is so high that after a few days the option can easily become worth less even if the price stays the same.
With crypto it's no different.
November 09, 2019, 01:14:29 AM
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November 05, 2019, 11:44:57 AM
I am aware of the volatility of the market but I am not interested with Options trading because I am more comfortable to trade through the traditional exchanges where I buy low and sell high. I am not saying that it is not a good type of trading, It really depends on how comfortable you are and for me, when I learned to trade cryptocurrencies in exchanges, I know that I can bring those skills from trading cryptocurrency to trading other digital assets.
We all have different mindset, priorities, likes and dislikes in life, yes, for some they may think trading is boring, and have a lot of job to do, so they might have no ample time to do trading, so for me, it is fine, as they can still do long term trading which is fit for busy persons.
I love trading too, but because of volatility of the market, I can't really concentrate well, and can't buy at dip and can't sell at the right time.
November 05, 2019, 08:14:00 AM
You can hedge your trades to protect them from incurring losses.
Remember, shorting is a dangerous game, why not try options and limit your risks peacefully?
Thank you for giving an insight to options trading, i have never tried that till now but after seeing your post i have to study how to trade in the options market, i usually monitor the market in future market understand how the trend is going when i am planning to trade but never entered the market till now, will be spending some time to study the market throughout and i will update it here, if i can have your telegram ID it would be great so that i can clear some doubts regarding options trading.Remember, shorting is a dangerous game, why not try options and limit your risks peacefully?
I've heard a website that completely serve the lessons of trading options and i've watched the video of their website and as a beginner i feel like they explained the lessons very well and i'm understand what they mean. You can go to https://optionalpha.com/ , they serve videos to watch there are many moduls to expert and it's best thing to watch during free time
November 05, 2019, 07:51:57 AM
You can hedge your trades to protect them from incurring losses.
Remember, shorting is a dangerous game, why not try options and limit your risks peacefully?
Thank you for giving an insight to options trading, i have never tried that till now but after seeing your post i have to study how to trade in the options market, i usually monitor the market in future market understand how the trend is going when i am planning to trade but never entered the market till now, will be spending some time to study the market throughout and i will update it here, if i can have your telegram ID it would be great so that i can clear some doubts regarding options trading. Remember, shorting is a dangerous game, why not try options and limit your risks peacefully?
November 05, 2019, 07:28:03 AM
Options trading is trading on the bare bones, which gives you less freedom on your positions and also where would you place yourself in the market. It is designed for noobs to at least get a taste of what it's like to participate in the real market. Now I'm not discrediting anyone who's making money off of it, it's just that it doesn't even let you get the skill to really trade on highly-volatile markets. Even if you get the greens for weeks, it doesn't mean that you're really good at it, it's just that your decisions happen to be on the right side of the guessing board.
I'd still pick the traditional trading methods over options trading any day.
You might think that, but there are a lot of advantages of Options trading when compared to traditional trading methods. It used to be that only professionals that used to trade option but a few platforms have taken the opportunity to provide trading options with user friendly UI, making it easy to trade options. If I list all the the benefits here, it is going to be a long post. You can just follow this link to learn more about the advantages. I'd still pick the traditional trading methods over options trading any day.
November 02, 2019, 10:05:45 PM
Here are some benefits of Options Trading,
-snip
Sounds interesting. well i have no knowledge about options and i haven't tried it yet, totally im not interested because i didn't know how it works nd i just heard from other crypto traders that it is not that different i forex. You jut have to put a call and that it. however your explanation opened ny mind how it works low risk and high reward if i'm right. I will check the link you provided in the first page. Thank you for explaining i want to learn more about trading. -snip
November 02, 2019, 02:42:21 PM
Options trading is trading on the bare bones, which gives you less freedom on your positions and also where would you place yourself in the market. It is designed for noobs to at least get a taste of what it's like to participate in the real market. Now I'm not discrediting anyone who's making money off of it, it's just that it doesn't even let you get the skill to really trade on highly-volatile markets. Even if you get the greens for weeks, it doesn't mean that you're really good at it, it's just that your decisions happen to be on the right side of the guessing board.
I'd still pick the traditional trading methods over options trading any day.
I'd still pick the traditional trading methods over options trading any day.
November 02, 2019, 02:14:15 PM
The lack of experience? I mean I would love to try it but I already have such a small amount that I don't want to lose it and I don't have any experience with options trading so it looks like a prime reason to lose all my money if I get in which is why I am not playing there, that is what it would be like for me, playing.
Obviously, there are people who got in and lost some money as well at first and then learnt and got better and now making a good amount of money but that doesn't mean I will be like them either. I could lose all my money since its such a small amount and I can't afford that right now, its quite risky for me. As soon as I have a bit of extra money that I don't care about losing I may actually give it a try but until then I won't be testing it.
Obviously, there are people who got in and lost some money as well at first and then learnt and got better and now making a good amount of money but that doesn't mean I will be like them either. I could lose all my money since its such a small amount and I can't afford that right now, its quite risky for me. As soon as I have a bit of extra money that I don't care about losing I may actually give it a try but until then I won't be testing it.
November 02, 2019, 04:49:16 AM
For the most part, options contracts traded in large exchanges and OTC markets that have market liquidity are not directly accessible to retail individuals. Instead, these retail individuals have to make trades through a broker or brokerage firm that has access to the exchanges or OTC markets.
Level01 allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.
For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSenseTM’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.
So, nothing can stop you from trying options trading now.
Level01 allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.
For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSenseTM’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.
So, nothing can stop you from trying options trading now.
November 02, 2019, 04:29:54 AM
Options never interested me in the stock market, and in my opinion they would be pointless to trade in the crypto market since I don't have an inkling as to where bitcoin (or any other coin) is going to be at the expiration of the contract. It's all guesswork to me, and I would rather own a coin than simply bet on where its price is going to be.
But I can see how options would appeal to gamblers, and there certainly are a lot of those in cryptoland. Bakkt is supposed to be a way for the big boys to bet on bitcoin, tho I don't think they've reached their potential yet. They probably don't like guessing on the price of something they have no good way to analyze. Anyway, anyone trading options ought to be very careful about leverage, because things can get very ugly very quickly the more leverage one uses. The exchanges love it, but its the traders that end up getting screwed.
But I can see how options would appeal to gamblers, and there certainly are a lot of those in cryptoland. Bakkt is supposed to be a way for the big boys to bet on bitcoin, tho I don't think they've reached their potential yet. They probably don't like guessing on the price of something they have no good way to analyze. Anyway, anyone trading options ought to be very careful about leverage, because things can get very ugly very quickly the more leverage one uses. The exchanges love it, but its the traders that end up getting screwed.
November 02, 2019, 03:19:06 AM
I think this is the harsh reality of this system, price volatility is the general term of this system because this is not a stable platform even there is no control of anything. I believe that a set of proper regulation could bring a positive change in this system, but still, trading is profitable for me, I think trading could bring to you a huge profit if you can manage it properly, so there is nothing to prevent you from stopping option trading, a tight passion could be the main thing of successful trading, It's true that cryptocurrency is facing always a price volatility so don't be panicked and don't attempt to panic sell, Because it's temporary situation. so let's set a plan for further trading.
November 01, 2019, 06:15:53 AM
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October 07, 2019, 05:38:17 AM
Feeling bearish? Buy a Put option.
If you think prices will move down, and you want to short the market but worry about forced liquidations or do not want to deploy your full capital, you can still participate in the market movements by buying a Put option.
Why buy Put?
Read about it in detail only on Sparrow's Medium page
If you think prices will move down, and you want to short the market but worry about forced liquidations or do not want to deploy your full capital, you can still participate in the market movements by buying a Put option.
Why buy Put?
Read about it in detail only on Sparrow's Medium page
October 04, 2019, 11:30:48 AM
Crypto volatility is back? I wonder when it was gone? The range of market fluctuation may vary but crypto markets are so far always volatile and for those traders who are good in predicting short term truing points, it is always a good market to trade with.
People here only know how to utilize large price swings.... the moment you see the range is tightening, people will pop up complaining about how boring the market has become.It's clear that they haven't traded any legacy assets before, because what's considered a huge price swing in gold or the stock market, makes people in crypto yawn and wait for a larger price swing to trade it. It's pathetic to be honest.
For the most impatient traders there is such a thing called leverage trading.... if you think the price swings aren't of any significance, crank up your leverage count and show how big your balls are. Don't cry when you get liquidated.
October 04, 2019, 09:08:47 AM
My level of skill set in analyzing and predicting the market fluctuations. Crypto volatility is back? I wonder when it was gone? The range of market fluctuation may vary but crypto markets are so far always volatile and for those traders who are good in predicting short term truing points, it is always a good market to trade with.
I never touched options trading. It is a headache to bother about its expiry. It means you must close your trade within that time frame whereas spot trading has nothing such a limitations. You can hold as long as you prefer like you may wait infinitely to book your profits. Now, tell me why should I try option trading even it would be capable of producing 10x profits in short time. Making profits in tension free way is a blessing and it might be equivalent to a regular day job (even you may not get your salaries at the month end, you will get paid for sure, just keep working on as your daily routines along with your all fun and with family times.).
I never touched options trading. It is a headache to bother about its expiry. It means you must close your trade within that time frame whereas spot trading has nothing such a limitations. You can hold as long as you prefer like you may wait infinitely to book your profits. Now, tell me why should I try option trading even it would be capable of producing 10x profits in short time. Making profits in tension free way is a blessing and it might be equivalent to a regular day job (even you may not get your salaries at the month end, you will get paid for sure, just keep working on as your daily routines along with your all fun and with family times.).
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