Post
Topic
Board Trading Discussion
Re: Insure your Bitcoin with options
by
crwth
on 04/08/2020, 06:21:39 UTC
Futures and options are very similar in terms of "hedging," and just like you pointed out.

Quote
Hedging is a trading strategy to reduce or eliminate the risk of holding one position by taking on another position.

I think what you didn't point out is the risk between the two choices that you have "Call" and "Put" Options. It basically has the same risk. but you need to know that there are fees on it when you are holding that particular position.

I still prefer to trade Futures even if it's riskier and has funding fees like in Binance Futures.