Sparrow and Elliptic join forces to strengthen global compliance capabilities

Sparrow is pleased to announce our partnership with Elliptic, the leading cryptocurrency compliance provider to step up customer protection with enhanced global compliance and anti-money laundering (AML) capabilities.

“We are pleased to announce our partnership with Elliptic, a globally renowned cryptoasset compliance provider who shares our mission to reduce the flow of illicit funds while improving trade surveillance. Their market leading transaction monitoring product, Elliptic Navigator, with its extensive blockchain database and capabilities will enable our team to manage risk in a systematic and automated way. We are committed to ensuring that Sparrow remains a safe, secure and compliant platform by global standards.” said Kenneth Yeo, CEO of Sparrow.

Learn more: https://blog.sparrowexchange.com/sparrow-and-elliptic-join-forces-to-strengthen-global-compliance-capabilities/

Always getting REKT by the volatile crypto market? You can insure (aka hedge in trading terms) your crypto assets with options trading.

What does this mean?

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

One simple example is to compare it to insurance, which is basically a form of hedging.

How do options come in?

Options and its trading terminologies may sound complex. However in layman terms, the mechanics behind options trading can be referenced to the insurance industry — where people pay a premium to insure their health. In fact, we could say that insurance providers are simply options sellers!

Here’s an example of how you can use options to insure your BTC.

Example: Insuring your BTC by buying a put option

If you hold 1 BTC you bought at $7,000 and is long term bullish but afraid of short term volatility, you can buy a put option priced at $200 to protect your position against a possible crash.

If BTC nosedived, your maximum loss will be capped at $200.

If BTC dipped to $6,000 on Settlement Date, you will lose $1,000 value from your BTC. However, your put option will have an intrinsic value of $1,000 and can be sold for that amount thus offsetting potential losses and limiting your loss to your Premium Payable.

Summary

Options can be used as an effective hedging tool — as a protection against market volatility for cryptocurrency holders or as part of a wider trading strategy for professional traders.


Read full article with accompanying images here: https://blog.sparrowexchange.com/insure-your-bitcoin-with-options/

 

Hello! Sparrow tokens (SPO) are native payment tokens on the Sparrow platform. With Sparrow tokens (SPO), users can enjoy 50% discount on transaction fees for their trades.

We recommend you to try out trading on Sparrow to make full use of SPO tokens

Right now SPO can be bought with other crypto at Sparrow's ConvertNOW facility or you can tick the checkbox at the trading interface to automatically "use SPO for fees".

SPO cannot be sold for other crypto at the moment.

Follow us on our official channels for any announcements or updates!

Website: https://www.sparrowexchange.com

Blog: https://blog.sparrowexchange.com/

Medium: https://medium.com/@FriendlySparrow

Telegram chat: https://t.me/SparrowExchange

Telegram announcement: https://t.me/sparrow_ann

Facebook: https://www.facebook.com/SparrowExchange/

Twitter: https://twitter.com/SparrowExchange

LinkedIn: https://www.linkedin.com/company/sparrowexchange/

Youtube: https://www.youtube.com/channel/UCXW1AX7vdgkcIxNaZJFRFwg

Bitcointalk: https://bitcointalk.org/index.php?topic=5146551.msg51185904#msg51185904

Reddit: https://www.reddit.com/r/SparrowExchange/

 

Have you considered using options to hedge or bet against such volatile movements?

Check out our article to learn more!

3 Strategies to Combat Crypto Market Volatility with Options Trading
https://blog.sparrowexchange.com/3-strategies-to-combat-crypto-market-volatility-with-options-trading/

Hello!

Feel free to check us out. We offer both Bitcoin (BTC) and Ethereum (ETH) European options with all trades settled automatically and transparently by smart contract.


- Trade easily on our intuitive and customizable trading interface
- Trade by API for maximum performance
- Control risk and improve returns with our full-featured and highly-liquid options trading platform supporting the needs of both retail and institutional traders
- Instantly and conveniently swap your digital assets at zero cost with Sparrow’s ConvertNOW Facility
- Your assets are safe with our top-notch security standards


Sign up today: www.sparrowexchange.com

Check out our latest article! Explains more on the difference between buying a Put vs shorting.

Shorting got you REKT? Try Put options.
https://blog.sparrowexchange.com/shorting-got-you-rekt-try-put-options/

Hello! Thanks for your sharing, great tips!

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

Indeed, especially for beginners, they should read and learn more about derivatives before diving in. We hope to be able to help with some sharings on options trading!

We've included some examples above on the benefits of options trading. Feel free to check it out.

Hello! Thanks for your interest. Here's a short explanation.


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 may make sense to buy Put rather than short the market) while allowing you to enjoy leveraged returns.


Buying Put vs shorting

Scenario 1: Unfavorable - BTC/USD rises in value by 20%

BTC/USD price at start: $10,000
BTC/USD price at end: $12,000

If you paid $1,000 Premium Payable to buy a 1 BTC Put position at a Strike Price of $10,000 and BTC settles at $12,000, your risk from the trade is capped to the Premium Payable.

In comparison, if you short BTC and BTC settles at $12,000 from $10,000, your loss will be $2,000 and potentially much worse, depending on how much BTC rallies.

Scenario 2: Favorable - BTC/USD falls in value by 20%

BTC/USD price at start: $10,000
BTC/USD price at end: $8,000

Likewise, if BTC settles at $8,000 from your 1 BTC Put position at a Strike Price of $10,000, you will profit $2,000, which is a 200% return on your $1,000 Premium Payable.

This is as compared to shorting BTC at $10,000. When the price reaches $8,000, your profit is still $2,000, which is a mere 20% return from your $10,000 position. You also risk your whole capital by placing this trade, as compared to buying a Put option where your risk is limited to your Premium Payable.


DISCLAIMER

The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Sparrow does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.

To the maximum extent permitted by law, Sparrow disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through any of our communication channels is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on any of our communication channels is at your own risk.

Hello! Thank you for your interest.

Please feel free to check out our channels here to learn more
- Youtube: https://www.youtube.com/channel/UCXW1AX7vdgkcIxNaZJFRFwg
- Medium: https://medium.com/sparrowexchange

You can also reach out to us on Telegram, we'll be more than happy to share more about options trading!
- Telegram: https://t.me/SparrowExchange

We are also working on coming up with more educational materials on options so please stay tuned 

8x profit in a bear market?!



Just last week, a Sparrow user shared his profitable trade with our Telegram community - https://t.me/SparrowExchange. How did he manage to do it?

Here’s a screenshot of his trade:



- User bought a Put on 1 BTC with Strike Price at $9,750
- Settlement Date was on 27 September 2019
- The cost for making this position was 210.93 SP$ (Premium Payable)
- BTC settled at $8,056.2
- Pay off at the end of settlement was 1,693.8 SP$


What’s his profit?

[ (Strike Price — Settlement Price) — Premium Payable ]

[ (9,750–8,056.2) — 210.93 ]

= $1,482.87

The cost of the trade was just 210.93 SP$, for a payoff of 1,693.8 SP$. That’s over 8x profit!

Now who says you can’t win big in a bear market?



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.



Disclaimer
The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.Sparrow does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.To the maximum extent permitted by law, Sparrow disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.Content contained on or made available through any of our communication channels is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on any of our communication channels is at your own risk.

8x profit in a bear market?!



Just last week, a Sparrow user shared his profitable trade with our Telegram community. How did he manage to do it?

Here’s a screenshot of his trade:



User bought a Put on 1 BTC with Strike Price at $9,750
Settlement Date was on 27 September 2019
The cost for making this position was 210.93 SP$ (Premium Payable)
BTC settled at $8,056.2
Pay off at the end of settlement was 1,693.8 SP$
What’s his profit?

[ (Strike Price — Settlement Price) — Premium Payable ]

[ (9,750–8,056.2) — 210.93 ]

= $1,482.87

The cost of the trade was just 210.93 SP$, for a payoff of 1,693.8 SP$. That’s over 8x profit!

Now who says you can’t win big in a bear market?



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.

Want to learn more about options trading? Chat with us on Telegram or visit our blog.

Disclaimer
The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.Sparrow does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence.To the maximum extent permitted by law, Sparrow disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.Content contained on or made available through any of our communication channels is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on any of our communication channels is at your own risk.

Hi James! Would like to clear some misconceptions here.

Options trading is risky

Flash crashes are very common in this volatile crypto market. This means that overly leveraged traders and investors will have to constantly face the problem of margin call, premature liquidation and large unforeseen losses. In September 2019, a Bitcoin flash crash of over $1,500 caused $651m liquidation on Bitmex.

Great risk/reward with options

By buying a Put option instead of shorting, you do not have to worry about being forced out of position prematurely. Risk is limited to just the Premium Payable while you still enjoy leveraged returns on your position.

Options trading is rigid

Actually options are considered one of the most versatile trading tool in the market, enabling you to profit in any market condition, whether you think the market is going up, down or sideways.

On Sparrow, we also provide customizable options - you can pick your expiry date (options settlement is every Friday at 4pm (GMT+8)  - whether short term (1 week ) or longer term (few weeks).

Hello! Let me try and help to clear some misconceptions

We all know that flash crashes are very common in this volatile crypto market. The volatility in the crypto market means that overly leveraged traders and investors will have to constantly face the problem of margin call, premature liquidation and large unforeseen losses.

However, the beauty of buying options is that risk is just limited to the premium you pay while you still get to enjoy leveraged returns on your position. Sparrow options, being covered, helps to further protect users’ positions.

Let me give you an example:

If you forked out $1,000 Premium Payable for a 1 BTC buy Put position at a Strike Price of $10,000 and BTC settles at $12,000, your risk from the trade is just capped at your Premium Payable. In comparison, if you short BTC futures and BTC settles at $12,000 from $10,000, your loss will be $2,000 and potentially uncapped depending on how much BTC rallies.

Likewise, if BTC settles at $8,000 from your 1 BTC buy Put position at a Strike Price of $10,000, you will profit $2,000, which is 200% returns from your $1,000 Premium Payable.

This is as compared to shorting BTC at $10,000. When the price reaches $8,000, your profit is still $2,000, which is a mere 20% return from your $10,000 position. You also risk your whole capital by placing this trade, as compared to buying a Put option where your risk is limited to your Premium Payable.

Especially in this volatile crypto market, buying Put options will be your best bet if you want to take advantage of a bearish move.

Hi phanhau608, the bounty issues and process is managed by the bounty manager. For replies and resolution, it is best to check with the BM. Thank you!

Sparrow and Horangi collaborate to reinforce platform security



Sparrow is excited to announce our collaboration with Horangi, leading cybersecurity firm in Asia, to strengthen platform security.

At Sparrow, we strive for the highest security standards and constantly promote better security practices. Recently, we successfully completed CertiK’s rigorous platform audit.

Continuing our rigorous security testing regime, Sparrow engaged Horangi to conduct a penetration test on our web application.

Learn more: https://medium.com/sparrowexchange/sparrow-and-horangi-collaborate-to-reinforce-platform-security-14982e1c2388

Hi IHaveDreams!

Thanks for your support and interest! Not to worry, even if you did not manage to be in the top 50, we have a sure-win bonus for anyone who trade at least 1 ETH worth of options!

That is quite easy to hit - you can make a sell call/put for ETH, by pledging 1 ETH for a week, get an instant premium and your ETH back by setting a strike price far behind which ensures your trade does not get exercised

If you need help, feel free to chat with us on telegram! https://t.me/SparrowExchange

No problem at all! All orders will go into the order book, which may be picked up by a counterparty - could be another user, or one of our market makers

1. It will depend on the final price during settlement day. Sparrow Options are European Options - meaning options will only be settled on settlement day

2. Thats right! For sell put, you are kinda betting market will go up - so if strike is 180, your stance is that eth price will not go lower than 180. If it goes below 180 then the option will be exercised


Do make sure to not set your strike price too far away from the current price though, to ensure your order gets filled - so far on Sparrow, more than 90% of orders get filled  😉

Hi puremage111,

Thanks for your interest!

You’re right, TradePROTECT = buying options by paying a premium (can be buy call or buy put) while TradeBOOST = selling options and collecting a premium  (can be sell call or sell put)

For your TradeBOOST scenario, where you put strike price at $220 when the current ETH price is at $200. It is a sell call position – meaning you are bearish and think the price will not exceed $220.

You get an instant premium from being an options seller - If it goes above $220, then your option will be exercised, otherwise it will expire worthless. Of course as a seller, you will hope that they expire worthless so that you can profit from the premium.



Hope this helps! Do join us on our Telegram chat: https://t.me/SparrowExchange - Our team and communities are active there where we often share options trading tips and strategies. Feel free to ask us any questions there! 

Hi Vimdesk,

We hope to welcome you to our platform with the Welcome Bonus and facilitate your trading experience at Sparrow.

We'll also have more campaigns coming up, so stay tuned if you are interested.


More info on SPO
- With SPO, users get to enjoy 50% off transaction fees on Sparrow
- For SPO now, only can buy on ConvertNOW Facility
- Sell is disabled for now, when it is available will inform the community
- SPO can be withdrawn to any ERC20 wallet, but not sent to any exchanges as it is not supported on any other exchange currently
- We will announce when we have official updates regarding trade activation or any exchange listings