How to Trade Binance Options for Beginners (Binance Options Trading)

[00:02] Binance options, even as a beginner. This isn't one of those fake guru videos where you get false promises like " guaranteed $100 a day" or "turn one dollar into a thousand with

[00:17] options trading" or something like that. I'll simply show you the steps to get started with options trading, what the benefits and risks are, and why I personally trade Binance. First, when you want to

[00:31] training, you need to create an account, which is 100% free. I'll leave the link in the description below the video where you can get up to $600 in bonuses. This is especially perfect for you if you plan to

[00:45] trade because this is specifically a training bonus. After clicking Binance registration page where you'll create your free account using your phone number, email address, Google account, or Apple ID. All

[00:58] methods are 100% free. Click here, for example. If you want to register using your phone number, choose " Phone Number." And as you can see, it works Phone Number." And as you can see, it works worldwide, even in India and Africa. And

[01:11] even in Europe and America it works perfectly. You put your phone number here, perfectly. You put your phone number here, create a strong password, and my automatically added. You click the box here and then click

[01:24] on Create personal account and you'll be inside Binance for free. Once you 're inside Binance, you'll find options trading here in the derivatives section, and right here in options, buy and sell European-style options.

[01:37] You click here and this options trading view will immediately open for you, which I'll explain how to navigate. If you prefer to trade on your mobile device, then go watch my

[01:51] previous options trading tutorial where I show click by click how to trade on your phone, and I also open an example trade with my own money. With options trading, you can buy the right to buy or sell at a

[02:06] buy or sell at a predetermined date and price. With the col option, you buy the right to buy that asset, and with the put option, which is here on the right, you can buy the option to sell an asset. And as you can

[02:20] see here, Binance continues to add more and more trading pairs. When I created my first video with pod options, there were only Ethereum and USDT as a trading pair. In my second video, they added PTC and USDT, and now there's a

[02:36] third pair, BNB and USDT. By the time you see this, there may already be many, many more trading pairs. As you know, things are constantly evolving and providing more services. I'm going to show you in a moment, click by click, how

[02:51] a trade works. Here I'll show you different bullish and bearish strategies. But first, I want to tell you why I personally prefer trading on Binance. I'll tell you a quick story about what happened recently when

[03:04] I tried a different crypto exchange. As you know, I've been in this industry for years now, and I love trying out new exchanges. Over the years, I've tried dozens and dozens of different exchanges, and I

[03:18] like having welcome bonuses because I see them as free money. So, I recently signed up with a new crypto exchange that provided great welcome bonuses. I went to their site, created my account, but

[03:31] then I started analyzing the fees on that site and comparing them to others. And then I was thinking, how is Binance 5 to 10 times more expensive? Lower fees than other exchanges, including one very popular one—I don't want to mention the

[03:46] name now—but this exchange has 5 to 10 times higher fees than Vainas specifically. So I was thinking how, even if I could get the big Welcome Bonus, it wouldn't be as profitable as doing [the other one]. And you also

[04:00] wouldn't be as profitable as doing [the other one]. And you also have to consider that Vainas is the most trusted of all crypto exchanges in the entire universe, and this is, of course, a huge benefit for trading. Because if you're trading on

[04:12] some random platform and that platform happens to crash, you can lose I personally prefer to trade on Vainas. They have extremely low fees, and this increases your profits. And secondly, it's also ultra-reliable. With

[04:27] options training, you can make money in all kinds of markets. You can make money when the market goes up or when it goes down, and there are different types of strategies that I'll show you in a moment. But I think the easiest way to

[04:39] understand this is through real-life examples, and that's why I'm going to show you this trade from my previous video. So, I opened trade from my previous video. So, I opened a trade here a couple of weeks ago, and it

[04:51] was a long option. In other words, I came here from the left side. And I chose one buy. So I expected the price to go up, right? Because if you buy a forward option, you expect the price to go up. If you buy

[05:07] a put option here on the right, then you expect the price to go down. So when I recorded this video, the price of Bitcoin was around 16.5444 USDT, as you can see here on the screen,

[05:22] USDT, as you can see here on the screen, and I bought an option to buy BTC at 16,000, right? So below the current market price. But of option that's below the market price, you need to pay a premium

[05:35] for it, and this premium is what you can pay with options. It's the maximum you can 're paying for the premium. So, for example, in this video, I spent $100, but this was the maximum I could lose with this trade. So let me show you

[05:51] what happened. This video was recorded at some point here when the price of Bitcoin was around 16,500, and the execution date around 16,500, and the execution date for those options was

[06:04] November 25th of the same month. You can see it here, and then you can see that the price It barely moved at all. So if I had been holding Bitcoin directly with these $100, I would still have practically $100. But

[06:17] since I paid this premium, I actually lost about half my money. You can see it in the previous video where I had 120 USDT there, and now I have I had 120 USDT there, and now I have around 52 USDT. And if the price

[06:30] had gone up during this period, for example, at the time of recording this video, the price of BTC is over 17,000, then the execution date would be now, and I could have made a profit because the price

[06:45] would have gone up. And as you learned, if you take a long call, you could make money. Let me show you the chart here so you understand how it works. Here you'll see the long call option. You can see that you start with a small loss

[06:59] when you pay the premium, and when the price starts to rise, at some point you'll break even. Then, as it continues to rise, you'll make more profit. But in this example, when the price barely moved, I lost some

[07:14] money on the trade. I hope this helps you understand how it works. Also, note that in this chart, the premium is the maximum that... You can lose. So you make a trade, for example, of $100. That's the maximum you can lose; you can't

[07:28] That's the maximum you can lose; you can't lose $200. Now, if we do a put option on the right side, it's simply the same but in reverse. Let me show you the chart. Here's a put option, and here's the maximum loss. You

[07:41] can see the premium, and when the price starts to go down more and more, then you can see that you start to make a profit, right? You can see that here's the point where you exit, and the lower you go, the greater the profit you

[07:55] make. So there are puts and calls, which are basically the opposite of each other, and this chart will help you understand different trading strategies. Here, for example, it says the right to buy stock, and here we're talking, of course, about

[08:09] cryptocurrencies. The idea is the same with the stock option trailer as here, and if you expect prices to go up, then you'll have to take a long call or a short put. If you expect prices to go down, then you're going to take

[08:25] a long put or a short call. Let me show you what this means in practice. A long call is when you take these on the left side and buy them. A short call means that... You take one of these and then

[08:38] click here to close and then you sell it. And of course, the same with puts. If you're going long, you take one of these and then open it and buy it. To go short, you click here to close and sell. And of course, here in the upper

[08:53] left corner, you can choose the execution time. This is when the option will be executed: immediately, and the longer the future, the higher the premium you need to pay because it gives you more flexibility. You can also simply

[09:07] scroll down here, and then you'll see these different options. Some people ask, "What's the difference between futures trading, which you can also do in futures contracts, and options trading?" You can find

[09:21] both here in the derivatives section. So, what's the difference? Let me show you right away. When you come here to the futures section, you open a trade at a pre-set price and date. So, you click here to

[09:35] buy. However, in options trading, you have the option to buy or the option to sell. So, there's no obligation, and this, of course, leads to a couple of benefits. First of all, flexibility, and the longer the

[09:50] timeframe you choose here, the more flexibility you have. The date here gives you greater flexibility, and secondly, you words, the maximum you can lose is the Premium, as I showed you earlier. So you can't lose more than this. And

[10:05] thirdly, there's the freedom of execution; you have the right to buy, but again, it's not an obligation. Futures trading also has its own benefits; perhaps the biggest is that you don't need to pay a Premium.

[10:18] Premium, but you don't need to pay it in futures trading. So it's more cost-effective, and the size is much larger than with options, and there's much greater liquidity because the trading volume is much higher.

[10:32] Futures trading is much more popular here on Binance and in most markets in general. So you understand that futures trading and options trading both have some benefits. I'm talking about the benefits of

[10:44] options trading, and for now, until the end of 2022, you have a 30% discount on your trading fees. In other words, if you pay, for example, $100 in fees,

[10:56] you'll receive $30 back, or if you pay $0 in fees, you'll receive 30 cents back. 30% discount, and if you make money on Binance by copying and pasting links, then you're an affiliate and you get a 20% commission plus all the

[11:12] trading fees your referrals pay on options trading. So, if they pay, for example, $100 in fees, you earn $30. And if they pay $1,000 in fees, you earn $300. It's that easy! If you want to

[11:26] learn how to make money by copying and pasting links, you'll learn it here in my "Make Money on Binance" playlist. Click, click, step by step. Here you'll also see how options trading works on your phone,

[11:38] as I showed you in my previous videos, and how to trade futures on Binance, and much, much more. So, you and I, my friend, will see you right away in this "Make Money on Binance" playlist.