In its latest big move, Binance has added the ability to trade options on Bitcoin.

What are options? You ask.

Simply put, an option gives the right for its holder to either buy or sell a commodity or asset at a predetermined price.

Let me illustrate with an analogy.

Let's assume that Bitcoin is currently at $11000. I feel that that can't be it's real price, so I issue an option for someone to have my Bitcoin at $12000. The option has an expiry date, after which it becomes useless.

So let's assume you feel that by the time the option expires, Bitcoin would be worth $100000. So you buy my option for the price I place on it, and hope that the price moves to $100000. When the day of expiration of the option comes, if the price moves up to $100000, I must sell my Bitcoin to you at $12000, which means I made a loss, and you made a giant profit. On the other hand, if the price of Bitcoin becomes $1, you just made a giant loss, and I made a profit. Simple 

People also like to trade options instead of the commodities themselves. It makes it a little less risky. This is known as options trading, and that's what brokers like IQ option offer.

So back to the context of the article. What does Bitcoin options mean for Bitcoin?

To be honest, it doesn't really mean much. It doesn't mean that anyone can manipulate prices to their whim. It simply means that you no longer have to trade Bitcoin exclusively, but can now bet on its price fluctuations without losing money as much.

Best of all, options trading doesn't require TA or FA, unless you really want to get serious.

Options also don't have to be the exact price of the commodity, although I have seen some cases where that was.....um.....the case.

Anyway, I hope you learnt something new. Thanks for reading!