The so-called option means that investors can trade a commodity without actually holding the commodity, and only need to pay a small amount of transaction fees to the exchange to obtain the trading authority of the target within a certain period of time, which can be traded in both directions.

In operation, if you expect to be bullish, you will buy up, if you expect to be bearish, you will buy down. The profit calculation is the same as the spot.

To give a simple example, Xiaoming predicted that ETH would rise sharply in the short term, so he bought 100 1 hour ETH call option on the exchange at a cost of 50USDT T. After 1 hour, ETH rises 10USDT, so Xiaoming gains100x10-50 = 950 USDT.

If ETH drops by $65,438+00 T one hour after Xiao Ming buys the call option, then Xiao Ming's loss is only $50 T spent on buying the option, and he does not need to bear the risk of loss caused by the sharp fluctuation of spot and futures contracts.

In short, option is a small and wide investment product. It only needs to pay a small transaction cost to obtain the product income right for a certain period of time, and the risk loss it bears is only the transaction cost.

At present, the American option trading method adopted by Bitoffer can grasp the market at any time without waiting for the delivery deadline, which makes it easier to control risks. If you have certain trading experience and market sensitivity, trading ETH options is relatively simple.