BitOffer: Bitcoin Options, Liquidation Free Even 2,000X Leverage

BitOffer, a new generation BTC financial derivatives trading platform, officially launched Bitcoin Options (BTC Options). As the first exchange which launched bitcoin options, BitOffer Bitcoin Options owns the features of “No Margins”, “No Fees”, “No Exercise” and “2,000X Leverage” but without any possibility of liquidation. Its most significant advantage is that investors possibly earn thousands of profits whether the bull market or bear market. The purpose why BitOffer launched BTC Options is to provide a more efficient and simpler hedging method for investors. In addition, the BTC Options price index is calculated based on the real-time transaction price and the weight ratio of the other seven exchanges, which makes it fair and transparent.

2,000X Leverage in BTC Options

In the market now, the highest leverage of futures trading is usually 100X, but for BTC Options, its leverage can even reach 2,000X. But the leverage of BTC Options is based leverage not the leverage chosen by investors. Based leverage is the leverage based on the input, it is quite different and here is an example between the inputs of options and futures:

For example, the bitcoin price now is $7,000,

1. Buying a bitcoin needs $7,000;

2. Buying a BTC Options contract needs $3;

Each BTC Options contract equals the earning right of a bitcoin when the bitcoin price rises from $7,000 to $8,000,

1. $1,000 Profit when buying a bitcoin;

2. $1,000 Profit when buying a BTC Options contract.

Both of them earn the same profit, but the budgets are 2,000 times different. Investors only need to pay $3 then they can earn profits as they pay $7,000. Besides, without requesting margins, liquidation will never happen in BTC Options.

But the leverage of futures trading is totally different. If you choose to open long 100X BTC, when the bitcoin price drops by 1%, the account may already be forced into liquidation. Due to the volatility of the bitcoin market is dramatic, liquidation is pretty frequently if investors do not learn the market skillfully.

How Do I Trade BitOffer Bitcoin Options?

In a way, options and spot trading both need to predict the bitcoin price direction in the future. But options trading allows users to buy call (Expect the market to be bullish) or put (Expect the market to be bearish). Once the investors make the correct prediction of the price direction, they will be able to earn the price spread as profit directly.

BitOffer BTC Options supports 7 different time length: 7-days, 1-day, 12-hours, 4-hours, 1-hour, 5-mins and 2-min. Users need to choose the time length when they place orders.

For example, now the bitcoin price is $9,000, and you buy a 1-hour call options contract with $5 after you analysis the bitcoin price will pump. An hour later, the bitcoin price rises by $500, and you earn $500, a 100 times profit when your contract automatically settled.

Instead, if the bitcoin price drops in an hour, which does not meet your expectation, then you will lose the budget you buy the options contract, which cost you $5. The largest risk of options trading is only the budget you input because it never requests you for any other fees.

With those points above, it cannot be denied that BitOffer Bitcoin Options is highly profitable but low-risky.