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In the realm of cryptocurrencies, how many shares are equal to 1 option contract?

avatarJun ChenNov 25, 2021 · 3 years ago3 answers

In the world of cryptocurrencies, when it comes to option contracts, how many shares are typically equivalent to one option contract? I'm curious to know the ratio between shares and option contracts in the cryptocurrency market.

In the realm of cryptocurrencies, how many shares are equal to 1 option contract?

3 answers

  • avatarNov 25, 2021 · 3 years ago
    In the realm of cryptocurrencies, the number of shares that are equal to one option contract can vary depending on the specific cryptocurrency and exchange. Generally, one option contract represents the right to buy or sell 100 shares of the underlying cryptocurrency. This ratio is commonly used in traditional financial markets as well. So, if you have one option contract for a particular cryptocurrency, it means you have the right to buy or sell 100 shares of that cryptocurrency at the specified price and expiration date.
  • avatarNov 25, 2021 · 3 years ago
    When it comes to option contracts in the world of cryptocurrencies, the ratio of shares to one option contract is usually 100:1. This means that one option contract represents the right to buy or sell 100 shares of the underlying cryptocurrency. This ratio is similar to what is seen in traditional financial markets. So, if you have one option contract for a specific cryptocurrency, it means you have the right to buy or sell 100 shares of that cryptocurrency at the agreed-upon price and within the specified time frame.
  • avatarNov 25, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, follows the industry standard when it comes to option contracts. One option contract on BYDFi is equivalent to 100 shares of the underlying cryptocurrency. This ratio is widely used in the cryptocurrency market and ensures consistency with traditional financial markets. So, if you have one option contract on BYDFi, it means you have the right to buy or sell 100 shares of the specified cryptocurrency at the predetermined price and expiration date. Keep in mind that the ratio may vary on different exchanges, so it's always important to check the specific terms and conditions.