For every trade, there is a buyer and a seller. On most trading platforms, including ClickOptions, you have the freedom to choose which side of the table you want to sit on.
So far, we have focused entirely on being the buyer of a "Right to Buy" ticket. But to truly master the market, you must understand exactly what the person on the other side of your trade is experiencing.
The Mirror Image
Trading Click Tickets is a perfect mirror. Any profit made by the ticket buyer results in an exact, equal loss for the ticket seller. Conversely, if the buyer loses money, the seller is making that same amount in profit.
Because they took your upfront fee, the seller now has a strict obligation. They are forced to sell you the Bitcoin at your locked-in target price if you ask them to.
Let's look at how the buyer's and seller's worlds are opposite.
The Seller's Fixed Profit
When you buy a ticket, your risk is fixed (you can only lose your small fee), but your profit is unlimited.
When you sell a ticket, this rule is completely reversed. The seller has a strict cap on their profit. The absolute most money a seller can ever make on a trade is the upfront fee they collected from the buyer.
If the buyer pays a $300 fee for the ticket, the seller collects that $300 immediately. No matter how far the price of Bitcoin falls, the seller will never make a single penny more than that $300.
The Seller's Unlimited Risk
Because the buyer's profit is unlimited when the market explodes, the seller's potential loss is also unlimited. If Bitcoin skyrockets and the buyer uses their ticket to instantly save $15,000, where does that $15,000 come from? It comes directly out of the seller's pocket. The seller is forced to cover the massive difference between the real market price and the locked-in price.
This is a critical concept: A ticket seller can lose far, far more than the small fee they collected. In a massive market spike, a seller could potentially wipe out their entire trading account.
Why Would Anyone Choose to Be a Seller?
If the profit is capped and the risk is unlimited, why would any sane trader choose to sell a ticket?
The answer comes down to one powerful weapon: Time.
When you buy a ticket, you are racing against the clock. You need the price of Bitcoin to move aggressively before the deadline. Time is your enemy. As the clock ticks closer to the deadline, the value of the ticket decreases as time runs out.
But for the seller, time is their best friend. Every single day that passes without Bitcoin making a massive move, the ticket loses a little bit of its value. If the market drops, the seller wins. If the market stays completely flat, the seller wins.
In other words, the buyer is betting that the market will explode. The seller is betting that the market will not explode.
The Collateral Rule (Understanding Margin)
When you buy a ticket on ClickOptions, you just pay your small fee upfront, and you are done. That is the only cash you need.
But because the seller has unlimited risk, the platform cannot just trust that the seller will have enough money if things go wrong. Therefore, sellers are required to keep a large chunk of cash locked up in their trading account as collateral. This is called Margin.
It is the platform's way of ensuring the seller can actually pay the buyer if the market skyrockets. If the market starts moving against the seller, ClickOptions may require them to add even more cash to their account, or the platform will forcibly close their trade at a loss to protect the system.
Trading "Unprotected"
You might hear the term selling a "naked" option. In ClickOptions terms, this simply means you are selling a ticket without actually owning the Bitcoin to back it up. You are trading completely unprotected, relying entirely on your cash collateral to save you if the market turns against you.
In Summary
- Buying a Ticket: You pay a fee. Your risk is strictly limited. Your potential profit is massive. You need the market to move.
- Selling a Ticket: You collect a fee. Your profit is strictly limited to that fee. Your potential risk is massive. You want the market to stay quiet.
Because the seller takes on unlimited risk and has to deal with complex collateral rules, we highly advise that all beginners stick exclusively to buying Click Tickets.
Wait until you are fully confident in your abilities, and perhaps practice on a risk-free demo account, before you ever take on the obligations of a seller!