What is Option Trading?
Options Trading means:
You don’t buy the full coin.
You only buy a small premium to profit from the price movement.
Example:
Your favourite Nike shoe = $100
You think the price may go higher next month.
Instead of buying the shoe today,
you buy an Option (Premium).
If the price goes up:
You make a profit.
If the price goes down:
You only lose the premium you paid.
That’s why people say:
Options = Limited Loss
But remember:
Limited loss doesn’t mean guaranteed profit.
Learn risk management first.
— Biki | Crypto Educator