4 Reasons Why Crypto Options Should Be Your Next Trading Instrument with Delta Exchange
Disclaimer: The text below is a press release that was not written by Cryptonews.com.
Trading crypto options offer investors a relatively cost-effective and low-risk solution for trading digital assets when compared to trading perpetual swaps or crypto futures.
A crypto option is a derivative contract that provides its purchaser or holder the right (but not the obligation) to purchase or sell an underlying asset at a specified price at (or in some cases - before) the expiration date.
There are two different styles of crypto options in financial markets globally - American and European. In the American option, a buyer gets to exercise the contract at any time before the expiry date. On the other hand, in European options, the buyer can only exercise the contract at the time of expiry.
However, the world does agree on there being only two types of options: The call option and the put option. A call option grants the right to buy the underlying asset, whereas put option grants the right to sell the underlying asset.
Similar to other derivatives, crypto options are contracts that allow crypto traders to speculate on the coming future price of an underlying asset, and they can be settled in either cash (USD) or actual crypto such as BTC, ETH, etc.
Let’s explore why you should be trading crypto options over other instruments. For the purpose of this post, we’ll take Delta Exchange as an example. Delta Exchange, for those unaware, is a fairly popular crypto derivatives trading platform that offers several unique features and products, including options chains on Bitcoin and Ether along with daily options on XRP, LTC, ADA, and more. It’s worth
Delta offers two types of options contracts on their platform, which are:
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