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The currency option hedge contract arbitrage tutorial

Time:12-02

For example, the currency present price is $18000

1, if you use 10000 yuan to open more than 20 times leverage to do
2, at the same time open three (1 hour) in BitOffer put option hedging cost ($200)

First, when the currency rose by 5%, which rose by $900

More than 1, 20 times the leverage to do, double contracts, also is to earn 10000 yuan
2, puts the loss of the principal, that is, $200 ($1400)
00-1400=$3100 to $8600 (net)

Second, when the currency fell 5%, that is, fell to $900

More than 1, 20 times the leverage to do, contract broke, the loss of 10000 yuan
2, 3 zhang puts profit $2700, or 18900 yuan
00-10000-1400=$3189 to $7500 (net)

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