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Are there any risks associated with buying calls on digital assets?

avatarSachin GargDec 29, 2021 · 3 years ago1 answers

What are the potential risks that come with purchasing call options on digital assets?

Are there any risks associated with buying calls on digital assets?

1 answers

  • avatarDec 29, 2021 · 3 years ago
    As a representative of BYDFi, I can tell you that there are indeed risks associated with buying call options on digital assets. The digital asset market is highly volatile and can be subject to sudden price swings. This volatility can result in significant losses for call option buyers if the price of the underlying asset moves against their position. Additionally, the lack of regulation in the digital asset market means that there is a higher risk of fraud and market manipulation. It's important for investors to carefully assess their risk tolerance and conduct thorough research before engaging in call option trading on digital assets.