The difference between options and spot/futures
Let's assume that the current Bitcoin price is at 10,000 USDT. If we invest in spot/futures/options at the same time, this is what will happen:
|
|
Spot |
Futures (10X) |
Options |
|
Initial investment |
10,000 USDT |
1,000 USDT |
1,000 USDT |
|
Falls to 9,500 USDT |
-500 USDT |
-500 USDT |
EST. -500 to -300 USDT |
|
Falls to 8,000 USDT |
-2,000 USDT |
-1,000 USDT(Liquidated) |
EST. -800 to -500 USDT |
|
Rises to 20,000USDT |
+10,000 USDT |
-1,000 USDT(Liquidated) |
EST. 10,000 USDT |
That is a call option, a type of investment product that does not lead to forced liquidation, with finite losses and infinite profits.
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