$BTC
$USDC
You crypto players who do not keep up with the news and understand the issues! Today I would like to analyze a bit about Options.
There are 2 types: Call (buy) and Put (sell).
It is a type of contract similar to Futures but does not use leverage and is not subject to liquidation; these contracts usually end on the last Friday of each month or each quarter.
So where does the profit come from???
It is that the contract users will benefit based on the difference between the contract price and the current price - the insurance fund!
As reported by Binance, last Friday! After the PCE index news came out, which was quite bad, these contracts did not get renewed, causing BTC to drop to 81k, but that was only a temporary stop; today, April 2nd, the new month begins, the news has been released, and investors including the one selling their Kidney have chosen to sell at the price levels in the picture, meaning BTC will decrease, by the end of this April BTC will reach 60k, retracting to around 64-65k waiting for renewal. You have to understand this to Long/Short correctly!
Even though it's a downtrend, the traders still adjust the price according to the news and the actual situation, not like $ACT and MUBARAK! Therefore, when you see the 6x head flying in to short and getting liquidated, don’t come back and say I predicted wrong! This is a basic analytical skill, not just a random guess like hitting 1 out of 10 and bragging! Last week I foolishly gathered NIL lottery stocks, after the PCE came out, BTC plummeted, cutting losses on NIL!
