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OptionTrading

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Mar 9
Bearish
Dec 7, 2024
3 Signals Your Trusted Guru Trader Is A Newbie 🤡 👇 1. He uses a leverage above 3x High leverage (above 3x) is often a sign of overconfidence an thus a lack of proper risk management. Hedge Funds never ever exceed 3x! Coincidence? Lower leverage allows you to endure adverse price movements without catastrophic losses! Your goal is to preserve your capital while staying in the market for the long-term! 2. He only trades on Centralized Exchanges Exclusively using Centralized Exchanges (CEXs) indicate limited familiarity with the broader crypto ecosystem. Trading on Decentralized Exchanges (DEXs) offer several benefits such as lower fee. Also DEXs are powered by the AMM Model, which enables trades to be executed instantly against liquidity pools (no need for order matching!) 3. He never hedge his position & never mentions options A trader who avoids or is unaware of options (e.g dual investment binance tool) shows lack in advanced trading knowledge! Hedging is a risk management strategy used to offset potential losses. For example, you can buy a protective puts to sell an asset at a specific price. This will limit the downside risk while allowing the asset to benefit from price increases! 4. Let Me Know In Comments! STAY TUNED! 🔥 & Remember, Your Support Is MASSIVELY Appreciated!👍💪 Also Don't Forget To Share It To Your Buddy! 🎅 - DYOR 🙏 NFA.🤝 #learntoearn #DualInvestment #OptionTrading
3 Signals Your Trusted Guru Trader Is A Newbie 🤡 👇

1. He uses a leverage above 3x
High leverage (above 3x) is often a sign of overconfidence an thus a lack of proper risk management. Hedge Funds never ever exceed 3x! Coincidence? Lower leverage allows you to endure adverse price movements without catastrophic losses! Your goal is to preserve your capital while staying in the market for the long-term!

2. He only trades on Centralized Exchanges
Exclusively using Centralized Exchanges (CEXs) indicate limited familiarity with the broader crypto ecosystem. Trading on Decentralized Exchanges (DEXs) offer several benefits such as lower fee. Also DEXs are powered by the AMM Model, which enables trades to be executed instantly against liquidity pools (no need for order matching!)

3. He never hedge his position & never mentions options
A trader who avoids or is unaware of options (e.g dual investment binance tool) shows lack in advanced trading knowledge! Hedging is a risk management strategy used to offset potential losses. For example, you can buy a protective puts to sell an asset at a specific price. This will limit the downside risk while allowing the asset to benefit from price increases!

4. Let Me Know In Comments!

STAY TUNED! 🔥 & Remember, Your Support Is MASSIVELY Appreciated!👍💪 Also Don't Forget To Share It To Your Buddy! 🎅 - DYOR 🙏 NFA.🤝

#learntoearn #DualInvestment #OptionTrading
Dec 8, 2024
💡 Options Trading Trick: The “Covered Call” Strategy 💡 🔐 What is a Covered Call? A Covered Call is an easy, low-risk strategy where you earn extra money (called a premium) from assets you already own by selling a call option. Let’s break it down: 🔑 How Does It Work? 1️⃣ You Own the Asset: First, you need to own some shares of a stock or cryptocurrency (like Bitcoin, for example). 2️⃣ Sell a Call Option: You then sell a "call option" to someone else. This gives them the right to buy your asset at a specific price (called the "strike price") within a set period. You charge them a fee (the premium) for this right. 3️⃣ Collect the Premium: If the asset's price stays below the strike price by the expiration date, you keep the asset and the premium fee. 4️⃣ What If It Goes Up?: If the asset price rises above the strike price, you have to sell it at that agreed price, but you still keep the premium as extra profit. 📊 Example: You own 1 Bitcoin (BTC), which is currently worth $35,000. You sell a call option with a strike price of $40,000. Someone pays you $500 premium for the right to buy your Bitcoin at $40,000 within the next month. Scenario 1 (Price stays below $40,000): If Bitcoin’s price stays below $40,000 by the end of the month, you keep your Bitcoin and the $500 premium. Easy money! 💰 Scenario 2 (Price goes above $40,000): If Bitcoin’s price jumps to $42,000, you’ll sell your Bitcoin at $40,000 (lower than market price) but still keep the $500 premium. You might miss some of the gains but still made profit! 🔥 📈 Why Use a Covered Call? Extra Income: Earn extra cash (the premium) while holding on to assets you already own. Lower Risk: Since you already own the asset, you won’t lose as much as riskier options strategies. Great in Stable Markets: This is best when you believe the price won’t go up too fast or stay relatively stable. 💼 Start Earning with a Covered Call – Simple, Safe, and Profitable! $BTC $XRP $BNB #OptionTrading #TradingTricks #cryptotrading {spot}(1MBABYDOGEUSDT)
💡 Options Trading Trick: The “Covered Call” Strategy 💡

🔐 What is a Covered Call?

A Covered Call is an easy, low-risk strategy where you earn extra money (called a premium) from assets you already own by selling a call option. Let’s break it down:

🔑 How Does It Work?

1️⃣ You Own the Asset: First, you need to own some shares of a stock or cryptocurrency (like Bitcoin, for example).

2️⃣ Sell a Call Option: You then sell a "call option" to someone else. This gives them the right to buy your asset at a specific price (called the "strike price") within a set period. You charge them a fee (the premium) for this right.

3️⃣ Collect the Premium: If the asset's price stays below the strike price by the expiration date, you keep the asset and the premium fee.

4️⃣ What If It Goes Up?: If the asset price rises above the strike price, you have to sell it at that agreed price, but you still keep the premium as extra profit.

📊 Example:
You own 1 Bitcoin (BTC), which is currently worth $35,000.
You sell a call option with a strike price of $40,000.
Someone pays you $500 premium for the right to buy your Bitcoin at $40,000 within the next month.

Scenario 1 (Price stays below $40,000): If Bitcoin’s price stays below $40,000 by the end of the month, you keep your Bitcoin and the $500 premium. Easy money! 💰

Scenario 2 (Price goes above $40,000): If Bitcoin’s price jumps to $42,000, you’ll sell your Bitcoin at $40,000 (lower than market price) but still keep the $500 premium. You might miss some of the gains but still made profit! 🔥

📈 Why Use a Covered Call?

Extra Income: Earn extra cash (the premium) while holding on to assets you already own.

Lower Risk: Since you already own the asset, you won’t lose as much as riskier options strategies.

Great in Stable Markets: This is best when you believe the price won’t go up too fast or stay relatively stable.

💼 Start Earning with a Covered Call – Simple, Safe, and Profitable!

$BTC $XRP $BNB
#OptionTrading #TradingTricks #cryptotrading
Jan 16
For all those who do #OptionTrading , I asked chatGPT if it is legitimate or halal from an Islamic perspective and the following reply came: From an Islamic perspective, options trading is generally considered haram (prohibited) by most scholars. Here's why: 1. Speculation (Gharar) Options trading often involves high levels of uncertainty and speculation. Islam prohibits excessive uncertainty in transactions (gharar), and options are typically used to bet on price movements without owning the underlying asset. 2. Non-ownership of Asset In options trading, the trader does not own the underlying asset; instead, they buy a right to buy/sell it later. Islam generally requires that you own what you sell—you cannot sell something you don’t possess. 3. Resemblance to Gambling (Maisir) Options, especially short-term and speculative ones, resemble gambling, which is clearly haram in Islam. The profit or loss is often based purely on chance and market movements, not real economic activity. 4. Interest (Riba) Concerns Many options are traded in margin accounts or involve interest-bearing transactions, which may include riba, another clear prohibition in Islamic finance. --- Are there any exceptions? Some scholars argue that hedging using options in legitimate business contexts might be acceptable under strict conditions. But this is a minority view and typically applies to institutional-level risk management, not individual speculative trading. --- Conclusion: Options trading is haram in most cases due to gharar, maisir, and riba. If you're looking for halal investing alternatives, consider: Shariah-compliant stocks or ETFs Real estate investment Islamic mutual funds or sukuk (Islamic bonds)
For all those who do #OptionTrading , I asked chatGPT if it is legitimate or halal from an Islamic perspective and the following reply came:

From an Islamic perspective, options trading is generally considered haram (prohibited) by most scholars. Here's why:

1. Speculation (Gharar)

Options trading often involves high levels of uncertainty and speculation. Islam prohibits excessive uncertainty in transactions (gharar), and options are typically used to bet on price movements without owning the underlying asset.

2. Non-ownership of Asset

In options trading, the trader does not own the underlying asset; instead, they buy a right to buy/sell it later. Islam generally requires that you own what you sell—you cannot sell something you don’t possess.

3. Resemblance to Gambling (Maisir)

Options, especially short-term and speculative ones, resemble gambling, which is clearly haram in Islam. The profit or loss is often based purely on chance and market movements, not real economic activity.

4. Interest (Riba) Concerns

Many options are traded in margin accounts or involve interest-bearing transactions, which may include riba, another clear prohibition in Islamic finance.

---

Are there any exceptions?

Some scholars argue that hedging using options in legitimate business contexts might be acceptable under strict conditions. But this is a minority view and typically applies to institutional-level risk management, not individual speculative trading.

---

Conclusion:

Options trading is haram in most cases due to gharar, maisir, and riba. If you're looking for halal investing alternatives, consider:

Shariah-compliant stocks or ETFs

Real estate investment

Islamic mutual funds or sukuk (Islamic bonds)
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