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Novice guideWhy Trade FAMEEX Options? What are the Advantages?
Why Trade FAMEEX Options? What are the Advantages?
2022/10/28 14:45:00



FAMEEX options trading is a user-friendly product that has been launched as our new derivative giving traders the ability to trade options with cryptocurrency as the underlying asset. It simplifies options trading to enhance the user experience and lower the barrier of entry.


There are some advantages to trading options on FAMEEX, which include: hedging risk, ease of use, higher potential returns, flexibility, short-duration strategies, and competitive premium price.


1. Hedge Risk

It’s very cost-efficient that you know your potential loss upfront before trading. The maximum loss will be your premium and fee. You can hedge your risk by buying in the opposite direction of the current market trend.


2. Easy to Use

It’s very simple to use and only needs traders to understand the concept of price movement in cryptocurrency and predict the potential direction of the market. Users do not need to go through the hassle of choosing a range of strike prices and expiration dates. Instead, FAMEEX options are designed with only automated expiry within 3M and 5M cycles from the open price. These financial instruments simplify options trading by eliminating the need to keep track of multiple expiry dates and strike prices.


3. Higher Potential Returns

Compared to traditional American and European-style options, FAMEEX options trading is a zero-sum option that gives a higher chance of profit to traders. You don't need a calculator to figure out if you spend less money and make almost the same profit, you'll have a higher percentage return. When they pay off, that's what options typically offer to investors.



4. Flexibility

FAMEEX options are exercised automatically according to the cycles. In contrast to European-style options or American-style options that can only be exercised on the expiration date or any time before the expiry date. In traditional options markets, FAMEEX options trading is worth more because of the flexibility that it offers. Traders won’t need to worry about the expiry date or whether to exercise or not.


5. Short-Duration Strategies

FAMEEX options offer short-duration contracts, ranging from 3 minutes to 5 minutes. This allows users to trade with different orders, providing a more comprehensive selection of trading strategies, especially in the short term. Options trading offers more investment alternatives. There are many ways to use options to recreate other orders in positions from different cycles.



6. Competitive Premium Price

Users who trade FAMEEX options do not incur additional potential losses other than the premiums paid and fees for the derivatives contracts. The difference between FAMEEX options and traditional options is that the same traders buying the same options at different times can result in a different premium price. Buying the same options might cost a different and more competitive premium. That’s to say, it’s possible to spend less premium and earn more in the same cycle.


What Makes FAMEEX Options Stand Out?

For FAMEEX options, FAMEEX is the sole issuer of the product. Thus, users can only be a buyer of FAMEEX Options. As option holders, users are not exposed to unlimited downside, unlike traditional options providers. In this case, the maximum loss would be the premium and fee paid for the options. Here are some features in FAMEEX options.


A. Zero-Sum Fair Game

In FAMEEX options trading, our platform doesn’t take the other end of the trade. It's a zero-sum game between traders, one trader's win is another's loss, and one trader’s loss is another win. Traders are able to transparently see the premiums placed on calls, puts, and ranges.


B. Backtest Strategy

FAMEEX lets traders backtest their strategy, showing ratios for past candlestick data for calls, puts, and ranges. All FAMEEX users can assess how it would have played out retrospectively. Backtesting is no guarantee of future performance. FAMEEX is not responsible for any losses and liabilities. Please enter the market at your own discretion.



C. One-Sided Market

FAMEEX reduces your possible loss in fees by automatically canceling or limiting your orders.
When there is a more than 80% chance that the market will move in a particular direction, winners' profits may not cover the cost of the fee. Our system will remove the ‘range’ choice under these conditions, FAMEEX will automatically cancel or limit the orders in order to reduce the possible loss of the fee.


In Summary

Unlike existing crypto options products, FAMEEX Options are straightforward and intuitively designed. This form of crypto derivatives simplifies options trading as it eliminates the need to keep track of multiple expiry dates and strike prices. FAMEEX Options offer access to high potential high profits with no additional risk. It also offers limited downside risk as the maximum loss of option buyers is the option premium. Users can use it to speculate on short-term price movements or help reduce risk exposure in underlying assets.


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