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FTX offers crypto options by address, giving users more control and flexibility over their investments.

FTX offers crypto options by address, giving users more control and flexibility over their investments.

Amysite - FTX options offer the ability to buy and sell contracts that track various coins, tokens, and other crypto-assets directly from the FTX application. The benefit of this approach is two-fold; you no longer need to trust a third party to deliver your coins as part of the option’s settlement, and you are not required to send any funds to an exchange to get started trading digital assets.


How to use the brand new feature

The new feature from FTX allows users to select a specific address to receive their dividends, rather than using the traditional method of receiving them through an exchange. This gives users more control over where their money goes, and how it's used. Plus, it's a great way to keep track of your investment portfolio. Here's how to use the brand new feature:

1. First, login to your FTX account and go to the 'Deposit' page. 

2. Select either ETH or ERC-20 tokens and scroll down to the bottom of the page for 'addresses'. 

3. Next, click on Address next to Dividend Address. 

4. Enter in any Ethereum or ERC-20 token address (e.g., 0xABCD123)

5. Click on Add Address then confirm your changes by clicking Save.


What are Exchange Traded Options?

Exchange traded options are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. Options are often used as a way to hedge against other investments, or to speculate on the future price of an asset. 

For example, if you have $10,000 invested in Bitcoin and it suddenly drops in value to $7000 per coin then you may want to buy an option contract with a strike price of $8000. If Bitcoin rebounds then your investment will recover some of its losses. 

You can also use these instruments for hedging or speculation purposes because they allow you to lock in a specific rate ahead of time. However, be aware that there is still significant risk associated with this type of investment so investors should only invest what they can afford to lose. 

Additionally, FTX does not offer leverage to traders meaning that any profits or losses made through trading will depend entirely on the direction of the market. FTX also features advanced order types like stop orders and conditional orders which provide users more power over their trades. 

Lastly, all tradable assets are now available on FTX including bitcoin cash (BCH), Ethereum (ETH), Litecoin (LTC) among others which means investors now have access to even more opportunities without having to change exchanges.


Read also : Ftx and ledgerX sign Up

How can I make an option order?

To make an option order on FTX, you'll first need to create an account and deposit some funds. Once you've done that, you can click on the Options tab on the main menu. From there, you'll be able to select the cryptocurrency you want to trade options for. 

After that, you'll need to choose whether you want to buy or sell options, and finally enter in your desired price and quantity. For example, if you wanted to purchase 100 call options at $0.25 per share with a January expiration date, you would need to input 25 as the price and 100 as the quantity (since each contract equals 100 shares). 

The call option would give you the right but not obligation to purchase those shares at $0.25 apiece before January 1st of next year. If the price goes up above $0.25, then you could purchase the stock for less than it's worth today, which means it could be a good investment.

If the stock stays below $0.25, then you don't have to worry about losing money on this particular transaction because all contracts are automatically exercised into shares when they expire.


Where can I read more about Exchange Traded Options?

Options are a type of derivative security that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a certain date. Options are traded on exchanges around the world, and they can be used to speculate on the direction of a stock, commodity, currency, or index.

In the US, there are two types of exchange-traded options: calls and puts. Calls give the buyer the right to purchase shares in a company for a predetermined price within a specified time frame. Puts give buyers the option to sell shares in a company for a predetermined price within a specified time frame.

 

Read more : The margin trading update

If the strike price is below the current market value of the stock, this represents a bearish position (the buyer is betting that prices will go down). If the strike price is above the current market value of the stock, this represents a bullish position (the buyer is betting that prices will go up). The seller agrees to provide shares at any point during or after this period for the agreed-upon price.