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  • three principles of how to trade the markets say I'm going to talk about these instruments, which are crucial to the future they're being traded right now, but the volume is gonna skyrocket and there's also gonna be a lot of tears and a lot of blood on the streets unless you know how to trade this.

  • So first I want to talk about what are derivatives, right?

  • I'm gonna go through what you see on the screen here and I'm gonna explain, you know, a derivative is something that derives its value from an underlying asset.

  • Very important there, we're gonna talk about how the price of the derivative changes as the underlying asset changes.

  • And again, it's very clear to understand that a derivative is not a product, it's a contract, for example, a gold future contracting is not gold, it's a contract between two people based on the value of gold and I'll come more back to that shortly.

  • And again, I cut my teeth on Wall Street trading derivatives.

  • I think one of the first trades I made was a derivatives trading futures contracts on the Chicago mercantile exchange and I went on to create some of the most complex and exotic derivatives of the time in the nineties and Wall Street.

  • I understand these at a fundamental level and most people don't, and I'm telling you when bad things happen, like we saw yesterday with titan, everyone's gonna be saying, where's my asset?

  • Well, you don't have an asset.

  • You have a contract with someone who doesn't exist and guess what that's worth.

  • That's where zero baby.

  • So we got to really talk about that on the same point, derivatives aren't evil and they're not bad.

  • They were blamed for the 2008 crash in the housing.

  • That's not true.

  • That was poor risk management and I want to talk about that today derivatives have been around for thousands of years.

  • You just haven't called them derivatives.

  • And we'll get into that today.

  • Next I want to talk about how to trade crypto options.

  • What you're gonna see here right now is a screenshot I grabbed less than an hour ago.

  • All right, these are my notes on the screen.

  • These are real Bitcoin options that are expiring and you can see on the screen in one day in about 22 hours from now, those are call options and put options.

  • I notice to most people this would complicate things.

  • This would probably fry your brain and you would say this is too complicated for me, but I'm gonna show you how you can master calls and puts and basic options on Bitcoin and ethereum.

  • And by the way, these things are trading at the mercantile exchange, I can't believe it, this is where I used to trade all of my future's on Euro dollars, et cetera.

  • So we're gonna get into that.

  • I'm going to explain options, premiums, strike prices, expiration dates, and the basic philosophy of a call option in a put option.

  • I'm getting excited.

  • Lastly, I want to talk about synthetic assets in crypto.

  • We've all heard of them, but there's all sorts of synthetic assets in crypto.

  • And I'm gonna go into synthetic equities, synthetic commodities, synthetic foreign exchange, there's all sorts of stuff, there's weather derivatives, there's anything you can put in A two in synthetic.

  • We have to understand the risks of that.

  • Their collateral issues, there's counterpart issues, there's regulation issues.

  • And we're going to go into that as well.

three principles of how to trade the markets say I'm going to talk about these instruments, which are crucial to the future they're being traded right now, but the volume is gonna skyrocket and there's also gonna be a lot of tears and a lot of blood on the streets unless you know how to trade this.

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B1 synthetic derivative asset trading crypto trade

3 Key Principles Of Trading ? ? Instruments which are crucial to the future - Brian Rose

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    林宜悉 posted on 2021/07/09
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