How do call options and put options work in the context of digital currencies?

1 answers

• Dec 16, 2021 · 3 years ago
  In the context of digital currencies, call options and put options can be used to trade digital currencies without actually owning the underlying assets. Call options give the holder the right to buy a specific amount of a digital currency at a predetermined price within a certain time frame, while put options give the holder the right to sell a specific amount of a digital currency at a predetermined price within a certain time frame. These options can be used to speculate on the price movements of digital currencies or to hedge against potential losses. However, it's important to note that options trading involves risks, and it's recommended to have a good understanding of options trading and the digital currency market before engaging in options trading.
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