The cryptocurrency bull market offers ample opportunity to make a profit for traders. Investors who buy from the spot market can turn a hefty profit by simply holding until the right time to sell. Those who desire to achieve profit faster can use the options trading market.
There are different types of options trading available for crypto assets. BigoMex exchange offers a simple form for trading options that have an expiration time and strike price that is understandable.
This form of options trading uses price fluctuations in the cryptocurrencies and is finished in a short amount of time, two minutes. The profit is a fixed payout based on a percentage of the initial capital that the trader orders. The simple mechanism is attractive for many traders, especially for new users who have a low amount of capital.
How the Simple Options Trading Works
When a trader correctly analyzes the price direction of a crypto asset at the time of expiration of the options contract, they are rewarded with a fixed return. This return is only correlated to the direction of the price, not the difference.
It means that the trader receives the same reward, whether the price moves only a small amount or a large amount in the right direction.
Conversely, if a trader wrongly analyzes the crypto asset price direction at the time of expiration of the contract, then they lose their initial position. This risk is considered to be one of the downsides of simple options trading, since a trader can lose their entire capital.
Trading Options on BigoMex
BigoMex has a trading interface that is easy to use. Users only need to choose their options contract such as BTC/USDT, and their initial capital that can begin as low as 2 USDT and up to 10 USDT.
Users then choose whether they think the price will go up, in which they press market buy, or if they think the price will go down, in which they press market sell. If their analysis is correct, they receive up to 70% rewards.
Choosing an Options Trading Platform
Options trading platforms outside of the U.S are not allowed to receive U.S residents unless they already have a license from the Securities Exchange Commission (SEC) or Commodities Futures Trading Commission (CFTC).
Using options trading platforms that receive licenses is a safer choice for users than platforms that are not licensed or regulated. BigoMex has received a license from Financial Crimes Enforcement Network (FinCEN) from the U.S and Accounting and Corporate Regulatory Authority (ACRA) in Singapore.
Options trading on BigoMex therefore becomes a good choice since you can trade options simply using a low amount of capital and receive assurance from a platform that is licensed by regulators.