Let's talk about options

Everyone knows that these are contracts that give you the right, but not the obligation, to buy at a specific price within a certain time period.

Now let's start with puts, which are short contracts bought if you think the price of a currency will decrease over time. The lower the currency goes, the greater your profit will be; they are meant for bear markets, and your maximum loss will be the premium you paid.

Calls work differently; they are for bull markets. The higher the price of the currency goes, the greater your contract's profit will be.

It is similar to short and long positions in futures, with the difference that here your loss is limited and your profit is unlimited; there is no need to set a stop.

Let's see an example with ETH; it currently costs 3343. Let's say you buy a put contract with a price of 3200 and pay 15 dollars. If ETH's price drops to 3200 or stays below 3343, your contract will be making money.

The same goes for call contracts; if it rises above 3343, you are already making money. See how simple it is.

Now, before you go trading options, first educate yourself about the risks they entail, and remember this is informational; it is not investment advice.