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Posts tagged as “Crypto derivatives”

Crypto Option Trading: What are Move Contracts and How to Trade them?

In the previous post we discussed what are Options and how to trade them. If you are unaware of Option trading, I strongly recommend you read it before proceeding. Options are a type of derivative product and their value depends on the underlying stock, in this case the cryptocurrency. Move Contracts and How to trade them Move Contracts are options that allow you to trade based on the movement of…

A guide to Understand Option Trading and Bitcoin Options

Crypto markets are maturing. The introduction of perpetual future contracts, option trading, leveraged tokens, volatility contracts and many such instruments are most likely what we need for institutional hedge funds/prop desks to take the crypto markets seriously. Options are one such financial instrument that could see stock market option traders coming into Bitcoin trading. More money flowing into Bitcoin is a good thing, right? Options have been a part of…

Crypto Derivatives: Understanding Bitcoin Futures and Margin Trading

Making money trading crypto was easy in 2017. HODLing was the best strategy. The traders (as opposed to “investors”) could 2-3x their money within days, sometimes even by randomly picking coins.  The picture is dramatically different in 2018. With the crypto marketcap down about ~85%, HODLing hasn’t really been effective. Moreover, when the entire asset class is in a downtrend, spot trading (i.e. buying and selling actual crypto assets) is…