1.Introduction to cryptocurrencies options.
2.What is cryptocurrencies options？
Buying a cryptocurrency option give you the right to buy or sell the cryptocurrency at a future date.
3.What is a call option？
Call options, the right to exercise the right to buy the underlying asset at maturity, are bullish. The issuer of the call option has the obligation to exercise the rights of the buyer.
For example: call option "BTC-3M-C-3800", that is, the holder of this option can buy BTC at the price of 3800 on the expiration date.
4.What is a put option?？
Put options, the right to exercise the right to sell the underlying asset at expiration, are known as puts. The issuer of the call option has the obligation to exercise the rights of the buyer.
For example, the put option "btc-3M-P-3800" means that the holder of the option can sell BTC at the price of 3800 on the expiration date.
5.What is the strike price of an option？
The strike price of an option is the price at which an option purchases or sells the underlying at expiration.
For example, the 3800 in the call option "BTC-3M-C-3800" is the exercise price of the option, also known as the performance price
6.What is a European option?
European option holders can exercise their options only at maturity. cryptocurrencies options only use European options.
7.The factors that impact the rise and fall of cryptocurrencies options
All investment products rise and fall, the direct reason is the market supply and demand, the fundamental reason is the value of its price;
Example: Tom bought 1000 cryptocurrency options of "BTC-3M-C-4000" at 200 USDT, now the price of BTC in the options market is $4,100
Influence factor(The value of option is mainly composed of intrinsic value and time value)
（1） Intrinsic value: the intrinsic value of the option is the income earned by the buyer when the option is exercised immediately, and the market-contract strike price =4100-4000 when the option is exercised.
（2）Time value: The longer the time, the greater the probability of reaching above the exercise price, the greater the probability of earning the option, the slower the option price will fall, and the closer to the exercise time, the closer the option price will be to its earnings. Because the time is long, the spot price is not good budget, exercise income is not good budget; The shorter the time, spot price fluctuations will not be too big, the basic gains have been clear; Time value calculation formula = option premium - intrinsic value =200-100
8.The difference between cryptocurrencies options and cryptocurrencies futures
（1）cryptocurrencies options differ from cryptocurrencies futures in terms of investor rights and obligations
cryptocurrencies option is a one-way contract. The long side of cryptocurrencies option has the right to perform or not to perform the contract after paying the royalty, but does not have to assume the obligation.
cryptocurrencies futures contract is a two-way contract, both sides of the transaction should assume the obligation of digital currency futures contract delivery, if not willing to actual delivery must be written off within the effective period.
（2）Cryptocurrencies options and cryptocurrencies futures is different on margin system.
In cryptocurrencies option trading, only the option seller needs to pay security (collateral) because the option buyer does not assume the obligation to exercise the option.
Both the buyer and the seller of cryptocurrencies futures have to pay a certain performance security.
（3）The cash flow of cryptocurrencies options is different from that of cryptocurrencies futures.
In cryptocurrency option trading, the buyer pays the seller the premium, which is the price of the option. cryptocurrencies options contracts can be traded at prices that vary according to the price of the underlying asset.
In cryptocurrencies futures trading, both the buyer and the seller shall pay the initial margin of a certain proportion of the face value of the futures contract. During the trading period, additional margin shall be charged to the losing party according to the price change, and the winning party may withdraw the extra margin.
（4）The profit and loss characteristics of cryptocurrencies options are different from that of cryptocurrencies futures
The earnings of cryptocurrencies options are subject to changes in the price, volatility and remaining term of the cryptocurrency, and are not fixed. The seller's gain is only the premium from selling the option, and the loss is not fixed.
Both sides of trading cryptocurrencies futures are faced with the possibility of unlimited gains and losses.There is the possibility of a warehouse explosion
（5）Different on functions and effects.
The hedging of cryptocurrencies futures is not to protect the cryptocurrencies futures but the physical (spot) value of the underlying asset. Financial instrument of the cryptocurrencies futures contract. Because the movement direction of cryptocurrencies futures and cryptocurrency’s price will eventually converge, the hedging can receive the effect of protecting the cryptocurrency’s price and marginal profit.
Cryptocurrencies options can also be used for hedging. For the buyer, even if he gives up the exercise, he will only lose the royalty and protect the value of his purchase fund. For the seller, either the digital coin is sold at the original price or the royalty is equally guaranteed.