How is OTM used in the world of digital currencies?

3 answers

• Dec 14, 2021 · 3 years ago
  OTM plays a crucial role in the world of digital currencies. It refers to an options contract where the strike price is equal to the current market price of the underlying asset. This means that the option is neither in-the-money nor out-of-the-money. Traders use OTM options to speculate on the price movement of cryptocurrencies without the need for owning the actual asset. It provides them with the opportunity to profit from price fluctuations while limiting their potential losses. OTM options are commonly used for hedging strategies and risk management in the digital currency market.
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• Dec 14, 2021 · 3 years ago
  In the world of digital currencies, OTM options are often used by traders to take advantage of price volatility. By purchasing OTM call options, traders can potentially profit if the price of a cryptocurrency rises above the strike price. On the other hand, buying OTM put options allows traders to profit if the price falls below the strike price. This flexibility and potential for profit make OTM options a popular choice among cryptocurrency traders.
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• Dec 14, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, recognizes the importance of OTM options in the world of cryptocurrencies. Traders on BYDFi can access a wide range of OTM options for various cryptocurrencies, allowing them to diversify their trading strategies and manage their risk effectively. With competitive fees and a user-friendly interface, BYDFi is a preferred platform for traders looking to utilize OTM options in their digital currency investments.
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