When it comes to trading in cryptocurrencies, especially for those interested in derivative trading such as futures and options, the platform you choose is crucial. In India, a notable platform where you can trade in Bitcoin options is Delta Exchange India. This platform is registered under the Financial Intelligence Unit (FIU) of India, and its registration number is displayed at the bottom of its website for verification.

Delta Exchange India is a fast-growing platform in the futures and options (F&O) market, particularly for cryptocurrencies. One of the significant advantages of using this platform is its low fees, which makes it more accessible for traders. The sign-up process on Delta Exchange India is straightforward. You need to provide basic details and complete the Know Your Customer (KYC) process to get started. Once your KYC is approved, you can add funds to your account. For instance, if you add fifty thousand rupees, you will see the platform providing you with the account number, IFSC code, beneficiary name, and bank name, which you can save as a beneficiary in your bank account.

Let’s say you decide to deposit fifty thousand rupees via NEFT from your bank account. After logging into your bank, you enter the necessary details and complete the NEFT transaction. Within seconds, the funds will reflect in your Delta Exchange account, and your balance will update accordingly. For example, if your account initially had seventy-three thousand rupees, and you deposit an additional fifty thousand rupees, the total balance will increase to one lakh twenty-three thousand rupees.

One unique feature of Delta Exchange India is that it operates exclusively in Indian rupees (INR) for deposits and withdrawals, with a fixed exchange rate of eighty-five rupees to the dollar. This means when you deposit funds, the conversion rate remains consistent, providing clarity and stability in your transactions.

Now, with funds in your account, you can begin trading. The platform offers comprehensive charting tools to help analyze the market. For instance, examining the Bitcoin to USD chart on a daily timeframe can provide insights into the market’s current state. Let’s consider a scenario where the chart indicates that Bitcoin might reach a new all-time high. Comparing this with gold’s performance, where gold’s bullish trend often signifies a weakening USD, we can infer that Bitcoin may also rise as the USD weakens.

In this analysis, identifying specific support and resistance levels is crucial. For example, the recent support level might be around sixty-eight thousand USD, indicating a strong base, while the resistance level could be around seventy-four thousand USD. This means that as long as Bitcoin remains above the sixty-eight thousand USD support level, it is considered bullish. When Bitcoin takes a significant jump, it often moves sideways for a while, providing opportunities for trading options.

Options trading allows you to leverage these movements. For instance, if you believe Bitcoin will remain above the sixty-eight thousand USD support level, you might consider buying call options. Conversely, if you think it will drop, you might buy put options. The beauty of Delta Exchange India’s platform is that it provides a detailed option chain, helping you make informed decisions based on open interest and volume.

Another significant advantage of trading derivatives on Delta Exchange India is the tax implications. In India, trading in cryptocurrencies typically incurs a one percent tax deducted at source (TDS) and a thirty percent tax on virtual digital assets (VDA) profits. However, when trading in derivatives, these taxes do not apply. Instead, profits from derivative trading are taxed as per your income tax slab, potentially resulting in substantial savings compared to direct crypto trading.

For example, if you make a profit of one lakh rupees from derivative trading, you will only need to pay taxes according to your income slab. This makes derivative trading not only a strategic financial move but also a tax-efficient one.

Trading in cryptocurrencies, especially in options, can be an exhilarating yet intricate experience. Today, let’s delve into the nuances of trading Bitcoin options on the Delta Exchange platform, where we will explore both buying and selling strategies. We’ll convert all values into Indian Rupees (INR) for clarity and relate our strategies in an easy-to-read narrative.

As of now, the price of Bitcoin stands at ₹70,000. This high value indicates a significant bullish trend. If you believe this trend will continue, adding money to your investment makes sense. Whether you’re buying “in the money” or “out of the money” options, or even considering a sale, understanding the underlying strategies is crucial. Let’s first explore buying options.

To initiate a trade, open the futures chart and set it to a five-minute interval for short-term analysis. Observing the chart, you might notice that Bitcoin is displaying a strong support level at ₹69,850. This level is showing consistent rejections, suggesting a good entry point for a bullish position. When trading short-term, it’s beneficial to look at long-term options and consider expirations one to two days ahead.

Options on Delta Exchange expire daily at 5:30 PM and weekly on Fridays at the same time. For instance, if there are only 10 minutes left until today’s expiration, it’s prudent to consider options expiring the next day. Let’s say it’s July 22nd, with 10 minutes left until expiry. Planning for a position on July 23rd might be more strategic.

Switching to the futures chart, let’s analyze a potential setup for tomorrow. With the bullish trend in mind, buying a call option seems logical. Given that options can be expensive, opting for “out of the money” (OTM) options might be more cost-effective. If Bitcoin is priced at ₹70,000, slightly OTM options could be a prudent choice.

Let’s execute a trade. Set the expiry date to tomorrow and choose a call option at ₹70,000. Opt for a market order to ensure immediate execution. For this example, let’s purchase 0.1 BTC worth of options. Depending on your available funds, adjust this amount accordingly. Placing a market order will incur a slight difference in profit and loss (P&L) initially, but if the market trend continues upward, profits will follow.

Your order is now submitted. As Bitcoin’s price rises, your P&L will reflect potential profits. It’s essential to monitor this and decide on stop-loss and take-profit levels. You can define these parameters directly within the platform, setting a stop loss to minimize potential losses and a take profit to secure gains. Creating a bracket order helps manage risk effectively.

With our buying position set, let’s shift to selling strategies. Here, we’ll consider shorting a put option. Given our bullish outlook, shorting a put option at a lower support level, such as ₹68,000, is viable. This level acts as a major support, and shorting above this could yield favourable results without undue panic if the price approaches this level.

When shorting, consider the expiry date and opt for long-term, like July 31st. Shorting put options out of the money requires selecting an appropriate level, say ₹68,000. Utilize leverage to maximize potential returns. For this scenario, let’s use a 25x leverage.

Execute a limit order to ensure a favourable price. Set the best bid at ₹1,350 and adjust the quantity according to your risk tolerance, possibly around 10% of your available funds. Placing this order with leverage means higher potential returns, but it also comes with increased risk.

Understanding liquidation price is crucial. This is the price at which your position will be forcibly closed to prevent further losses. For our example, the liquidation price would be when the premium hits ₹3,790. Monitoring your position size, estimated trading fees, and potential liquidation price helps manage risks.

Once your order is submitted, it will reflect in your active trades. The charts will continue to update, showing real-time data on your positions. Tracking P&L, recent trades, taker activity, implied volatility, volume, and open interest provides valuable insights. These metrics are essential for making informed trading decisions.

If your buy order was successful, you’ll notice Bitcoin’s price movement. Keeping the order open allows you to capitalize on the bullish trend. Meanwhile, your sell order at ₹1,350 remains active, awaiting execution at the desired price.

Trading on Delta Exchange is user-friendly, with instant withdrawals and 24×7 customer support. This support is invaluable, especially when trading during off-peak hours. The ability to reach out for assistance ensures smooth and efficient trading experiences.

In conclusion, trading Bitcoin options involves understanding market trends, analyzing support and resistance levels, and executing strategic buy and sell orders. Utilizing tools like leverage, stop-loss, and take-profit orders, and monitoring key metrics, traders can navigate the volatile crypto market effectively. With platforms like Delta Exchange offering robust support and user-friendly interfaces, both novice and experienced traders can find opportunities to profit from Bitcoin’s dynamic price movements.

Whether you are adding money to your investments, analyzing charts, or executing trades, a well-informed strategy is key to success in the world of cryptocurrency options trading.

Bitcoin Option Trading on Delta Exchange India: https://bit.ly/DeltaFreeOffer

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