Recently, digital asset exchange headquartered in London and specializes in NSO — AOFEX just-released the Chinese version, and officially open to users in China.
It is always strategically beneficial to focus on exchanges and look for new investment opportunities on early stages in derivative sections. AOFEX happens to have one of the exchanges with the most creative section so far this year — NSO.
NSO is the shortcut for Non-Standardized Option. AOFEX official defines it as a brand new derivative in digital asset exchange and trading platform that helps investors hedging potential risks in the market with the gigantic price change, because of simplicity, flexibility and low barrier to entry in NSO.
As a matter of fact, the name sounds complicated even to professionals. After experiencing it, I’d like to define it as an enhanced version of “guessing raise or fall”. For those of you who are familiar with MAI or TCT, the idea should be pretty straightforward.
“Guessing raise or fall” basically allows users judging the price of a certain crypto during a fixed time period. Users could invest money with their predictions, and if the reality matches the option bought, users get pretty high yield. On the contrary, if the guesses of users did not become the actual reality, they would lose their investment of the prediction. Similar to “guessing raise or fall”, NSO allows users to evaluate and invest in a certain trading pair within a limited period of time (5min/15min/30min/60min/4H/1Day), and then buy the corresponding option. Returns will be received with correct guesses; however, the returns are not as simple as “guessing raise or fall”, because the yield is not fixed, but real-time as the “AI Earning Forecast Model” calculates. In other words, with identical time section and percentages in raise, yield in NSO still changes along with the market. Please see the attached photo trading 5 minutes EOS/USDT on NSO. Obviously, the yield with every single option is different.
Things might get tricky because NSO doesn’t seem to make a huge difference than “guessing raise or fall”, but don’t underestimate NSO with Earning Forecast model by Artificial Intelligence. Actually, NSO comes with a wide variety of functions for users.
To begin with, the first approach is generating potential yield.
Users could triple their digital asset within 5 minutes. You can still place orders in the last 10 seconds. Nonetheless, it would be such a waste to just think NSO as an investment tool, because NSO is so much more valuable in other scenarios.
The second approach is hedging risks.
Often times, investors keep contract deals to hedge unstable fluctuations and changes in markets. For instance, when investors buy a token issued by an exchange, most would buy the contract deal of falling in the token after IEO and the blast. However, the consensus of other individuals is unpredictable, therefore the contract cannot be delivered on time. As a result, the hedging deals turns into contract deals, and eventually cause traumatic losses. Since the yield of NSO changes to the market, which means investors can hedge systematic risks via NSO. Let’s take an example in NSO, the yield of “1day (Time session) — EOS/USDT (Trading pair) — Rise (Option) is 2.44”. If the price of EOS falls, and we invest one EOS in NSO with the option indicated above, 1.44 more EOS would be added to the account. If a user owns 100EOS, trading 1 EOS in NSO would hedge 1.5% loss.
Lastly is the Prediction Approach.
Isn’t it the most attractive function? Unlike traditional “guessing raise or fall”, which is gaming between the platform and users; AOFEX, on the other hand, generates earning forecast model or a tendency by AI. What does it supposed to mean? Users are not gaming with the exchange, but the market. It is pretty obvious that if we could generate profit out of NSO by predicting the trend of the price. In short, if the yield of “rising” is greater than the yield of “falling”, the price is likely to go down, and vice versa.
As we all know, if the success rate of an ordinary trader is 49%, then a “Joker” trader could reach the success rate of 51%. It is the “mere 2%” that makes the huge difference with numerous transactions, and it is the “mere 2%” that differentiate the rich and the less wealthy. In conclusion, the technical advantages within NSO could be a tool to optimize quantization in trading. Additionally, there are way many more aspects NSO could extend.