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

1 answers

• Dec 27, 2021 · 3 years ago
  Long put and short put options are popular among traders in the digital currency market. These options allow traders to profit from downward price movements in digital currencies. A long put option gives the trader the right to sell a specific amount of a digital currency at a predetermined price within a specified time frame. This can be useful for traders who believe that the price of a digital currency will decline. On the other hand, a short put option involves selling a put option contract with the obligation to buy a specific amount of a digital currency at a predetermined price if the option is exercised. This strategy can be used by traders who expect the price of a digital currency to remain stable or increase slightly. It's important to note that options trading is a complex and risky endeavor, and traders should carefully consider their risk tolerance and investment goals before engaging in options trading.
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