To get an idea of this subject, the option is actually a monetary expression representing the type of derivative financial instrument. A financial instrument is a truly negotiable asset of any nature, a certificate of ownership associated with an enterprise, or even a contractual right to receive or supply an asset or monetary instrument. Meanwhile, the derivative is a “contract between the two parties that defines the terms,” according to Mark Rubinstein’s book on derivatives. These conditions are usually the dates and values of the variables in the agreed contract.
So, what’s the catch?
This is all or absolutely nothing: the reward, which is fixed and announced, is exactly the same as the reward that you can receive as part of the payment. That is why it is called bitcoin simply because it includes only two results: profit or loss. Either you have a fixed amount of any asset, or you get absolutely nothing.
Here is an illustration. Let’s say there is a business called XYZ Worldwide. A venture investor buys a bitcoin for cash or nothing in stock for $ 200. The btc to inr payment for this option is $ 2,000. When the option expires and the date of the option, along with for stocks worth $ 200 or more, you can get paid for $ 2,000. Otherwise, you will not get anything.
Does this sound dangerous?
Of course, however, you understand what you are getting into. This is a very good element regarding bitcoin: it provides all the information you want to make in order to make the right choice.
