For those in the finance sector, spot and futures trading are familiar concepts. They often pave the way for each other, and options trading is the latest and most optimized form, addressing the two primary concerns: profit and risk.
SPOT TRADING
Spot trading is the most basic form of trading with the concept of immediate transactions—essentially, it's an exchange of money for goods or vice versa. It's akin to buying and selling a commodity.
Example: You buy Coin A at $5. After market fluctuations, Coin A increases to $10. You sell immediately and make a $5 profit (or vice versa if the price drops).
FUTURES TRADING
In theory, futures contracts are agreements to trade a specific asset at a future date for a predetermined price. The key difference from spot trading is the high leverage involved; you only need a small amount of capital, but the potential profits (or losses) are significantly magnified (e.g., x5, x10).
Example: A futures contract A is worth $100, and the platform allows 10x leverage. You only need to put up $10 to buy the futures contract (this $10 is collateral). If the contract value increases by 10% (to $110), your profit doubles your initial capital. However, if it decreases by 10% (to $90), your account is immediately wiped out (you lose the entire collateral).
While it seems like a 50/50 chance, in practice, the high volatility often leads to rapid losses, especially during market fluctuations.
OPTIONS TRADING
Options were created to reduce the high risks associated with futures trading while still providing stable profits (spot trading is less volatile but offers lower returns). With options contracts, you predict the future value of assets like coins A, B, etc., at a specific future time without needing to buy or sell them directly.
Example: Suppose on August 16th, the current price of BTC is $1850. Person A sells a Call option for ETH—1608—$1850—C. This means person A commits to selling ETH at $1850 on August 17th, regardless of the actual market price. Person B buys this option for a volume of 0.01 ETH and pays a premium of $10 to person A.
While options trading is popular globally, it's still relatively uncommon in the Vietnamese market. This might be due to the extensive knowledge required or misinformation causing hesitation among potential traders.
In my personal opinion, options trading represents the future of the current crypto market. I created this group for official options traders to exchange knowledge, ideas, and stay ahead of the trends.
Conclusion
While each trading method has its pros and cons, understanding them thoroughly can help you make more informed decisions and better manage risks and profits. Happy trading!

#CryptoTradingGuide #Options #Spot #FutureTarding

In the world of financial markets and trading, adapting to evolving strategies and risk management techniques is key to success. Recently, I came to know DBOE (DeFi Board Options Exchange) and unregrettably made a significant shift in my trading approach by switching from trading futures to trading DBOE options. In this blog post, I'd like to share the reasons behind this transition and why I believe it's a game-changer for me.
Better risk management for worst case scenarios
One of the primary factors that led me to make this change was the ability to tailor my risk management strategy more precisely
Capped Losses with DBOE Options
One of the standout advantages of trading DBOE options is the clearly defined risk. When buying DBOE options, my worst-case scenario is limited to the premium I pay for the option contract. This always works regardless of how many different Options positions I have. This capped loss provides a level of comfort and security that is hard to achieve with futures.
2. Unlimited Loss Potential in Futures
Conversely, when trading futures, the potential for loss is virtually unlimited. It's a sobering thought to consider that a wrong move could lead to my account being wiped out entirely, with positions auto-liquidated. The prospect of such a significant loss weighed on my decision-making.
I know there are people trading futures and relying on the exchange’s auto-liquidation as their stop loss because they can easily create a new account. However, this is only applicable for those with a single future position. As soon as they want to have multiple positions such as different expiries or different underlying markets, they will no longer be able to continue with this reckless approach.
Decent upside for the right decisions
Maximised Upside with DBOE Options
When making directional bets with DBOE options, the potential for profit is astounding.
For instance:
Consider a scenario where I buy an “at-the-money” DBOE Call Option on ETH with following parameters:

It’s at-the-money Option because ETH is also having a price of $2080 as of now.
For everyone’s knowledge, DBOE is a vertical spread of two regular Options. Therefore, this Call option E2080CNov12 will have a payoff as the difference of two regular Call Options, one at strike $2080 and another at strike $2180.
Given the current market implied volatility being around 45%, the initial premium I have to pay is $22 for one option.
At expiry, if ETH price is indeed 2180 or above this option E2080CNov12 will have a final payoff of $100.
DBOE also has a very nice and intuitive P&L graph detailing all the scenarios with regard to the underlying price on the expiry date as above. Check it out.

In this case, I stand to make a decent profit of 360% = ($100 - $22) / $22, or a winning ratio of 460% (every $1.0 for $4.6 to bring home)
I found it is very convenient to track this maximum winning ratio (MWR) as the last column on the DBOE platform.
Limited Lerverage Futures
In contrast, with futures trading, while I might have access to high leverage ratios offered by centralised exchanges, the actual return on investment can be significantly limited.
For the same market situation with ETH price of $2080, using 20x leverage, I would need to put up $2080/20 = $104 as an initial margin.
Certain exchanges might add some mark-up on top of the bare $104 above, but for simplicity we ignore it for now.
If ETH reaches $2180 as above then my profit would be $100, resulting in a 96% return.
In order to have the same return as in Options with Futures, ETH needs to move up at least $2430. Of course, the probability of it happening will be much lower.
It’s clear that the potential for substantial returns is greater with DBOE options.
Others perks with DBOE Options
Simplified Risk Factors
Perpetual futures trading often involves complexities like the Funding Rate, which can have a significant impact on the cost of holding positions. Switching to DBOE options allows me to sidestep these intricacies and focus on more straightforward risk factors.
2. Enhanced Peace of Mind with Non-Custodial DBOE Options
The non-custodial nature of DBOE is another compelling reason for my transition. Knowing that my DBOE option positions are tokenized and securely stored in my wallet provides me with a level of confidence and peace of mind that is invaluable in the world of trading
3. Appealing airdrop basing on trading volume
DBOE is having a very generous airdrop program based on trading volume. The more you trade, the bigger airdrop you will be receiving from the project. This comes as free and there is a huge possibility it will turn out to be a handsome amount of money in your portfolio once DBOE is big.
4. Exploring Advanced Strategies
Lastly, DBOE options trading opens up a world of advanced strategies that allow me to bet on volatility, irrespective of market direction. This aspect of DBOE options trading is so rich and diverse that it deserves its own dedicated discussion in a future blog post.
In conclusion, my shift from trading futures to trading DBOE options has been driven by a desire for enhanced risk management, the appeal of capped losses, the potential for substantial profits, simplified risk factors, and the comfort of non-custodial trading. While trading DBOE options may not be suitable for everyone, it aligns perfectly with my trading style and objectives. It's a decision I'm confident will lead to more successful and fulfilling trading experiences in the future.
Check it out: DBOE
Note: Article from November 2023
An effective way to prevent risks, when the ETH ETF is approaching

#DBOE #Options #CryptoTradingGuide #ETH

Recent legal changes tightening and opening up Blockchain exchanges in major countries like China and the United States are showing positive dynamics for cryptocurrencies. China recently announced the market for over 500,000 blockchain experts and the establishment of digital asset exchanges, signaling potential explosive developments for crypto exchanges in the future.

The ever-evolving topic of the differences, advantages, and disadvantages of Centralized Exchanges (CEX) and Decentralized Exchanges (DEX) remains relevant for investors. Here are the key points:

CEX:
Exemplified by platforms like Binance, OKX, Coinbase, Bybit, BitMex, Deribit.

Fast transaction speeds and lower fees.
Uses Centralized Limit Order Book (CLOB).
Users deposit funds onto the exchange, subject to high supervision.
Exchange-created wallets, investor assets depend on the exchange's existence and policies.
Large user base, resembling traditional financial exchanges.
Risks include loss of liquidity, hacking, and the exchange controlling the game.

DEX:
Exemplified by Uniswap, PancakeSwap, Maker, DBOE.


Utilizes Automated Market Maker (AMM) methods, e.g., PancakeSwap.

Some DEX, like DBOE, use Centralized Limit Order Books.

Users control their wallets and assets, often prioritizing anonymity.
Reduces risks from the exchange, but users must protect against personal errors.
Slower than CEX, higher gas fees for transactions, especially on older chains.
Complex deposit and withdrawal processes, susceptible to personal scams.
As of now, CEX leads due to familiarity, user-friendly interfaces, and faster transactions with lower fees.
However, DEX excels in security and aligns with the decentralized nature of Web 3. The shift from Web 2 to Web 3 and recent incidents like the FTX collapse have increased DEX's appeal.

With the introduction of Layer 2 and Layer 3 solutions, transaction speed and fees for DEX are expected to improve, making them more competitive. Traditional centralized exchanges may act as a stepping stone for the transition to decentralized exchanges. Investors may prefer connecting and profiting through a more secure and self-controlled approach.

The narrative may shift in the next 2-3 years as technology stabilizes in terms of speed, fees, and policies. During this period, using assets interchangeably between CEX and DEX seems reasonable.
#binance #Uniswap #DBOE

With Bitcoin Spot ETFs approved and ETH ETFs soon to be launched, crypto is now recognized as an investable asset. If you're not yet familiar with trading options or haven't started learning about them, you're missing out. Options trading has shown significant growth in 2022-2023 and is expected to surpass futures trading this year. Options are seen as a superior risk management tool compared to other investment forms, offering substantial profit potential with leverage up to x20.
Options traders now have more opportunities thanks to the rise of DBOE. This DEX features price range options, allowing traders to profit from both rising and falling coin prices while managing risks effectively. DBOE, hailed as a Hidden Gem and a Game-Changer, increased its liquidity 20-fold in the first three months of 2024. It focuses on bringing traditional options to crypto through on-chain Central Limit Order Book (CLOB) technology, a first for DEX platforms. Additionally, DBOE plans to launch a new-generation Spot DEX in early 2024.
Team and Technology:
DBOE boasts prominent advisors from Alphalab and Zodia, including world-renowned mathematician Vladimir Brazov and James Harris, CCO of Zodia. The founding team comprises experts from Vietnam, Singapore, and Malaysia, with backgrounds in technology, finance, and blockchain from leading organizations like Binance and Goldman Sachs.
DBOE's standout feature is its 100% on-chain CLOB, leveraging top-tier DMM technology to fully integrate traditional options into crypto. This allows users to be both buyers and sellers, a feat unmatched even by leading CEXs.
Token and Airdrop:
DBOE has a total supply of 250,000,000 tokens, with an attractive OTC price of approximately $0.15 per token. Although the backers are not officially announced, they are believed to be from AlphaLab and Zodia.
Airdrop Instructions:

Participate in the Luckydraw program with a 100% chance of winning:
Total prizes: 5000 USDT + 500,000 Dpoints and hundreds of free Options slots.Spin every 3 hours per wallet.
Steps:

Connect Metamask or Core Wallet.Predict whether ETH will rise or fall next week.Spin and win.
If you win Free Options, return every Friday to check your prediction.
Try your luck here! : https://lucky.dboe.exchange/