Feeling bearish? Buy a Put option.

If you think prices will move down, and you want to short the market but worry about forced liquidations or do not want to deploy your full capital, you can still participate in the market movements by buying a Put option.

Why buy Put

Unlike spot trading which requires full collateral, buying a Put option allows you to participate in the movement of an underlying asset for a relatively small price (Premium Payable). 

This removes the risk of liquidation (which is why it makes sense to buy Put rather than short the market) while allowing you to enjoy leveraged returns. 

Example 

  • You are bearish on BTC and expect it to trade below $9,000 on 30 August 2019
  • You can buy a Put for 1 BTC with Strike Price at $9,000, Settlement Date on 30 August 2019 
  • The cost for making this position will be 112.14 SP$ (Premium Payable)

 

How do I profit?

 

 

 

 

 

 

 

Learn more about how you can profit from options in any market conditions: 

 

Disclaimer

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