common-close-0
BYDFi
Trade wherever you are!

How does selling a put option work in the world of digital currencies?

avatarClau UlloaDec 27, 2021 · 3 years ago1 answers

Can you explain how selling a put option works in the context of digital currencies? What are the steps involved and what are the potential risks and rewards?

How does selling a put option work in the world of digital currencies?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we offer a platform where users can sell put options on various digital currencies. When you sell a put option on our platform, you receive a premium for taking on the obligation to buy the digital currency at a predetermined price. If the price of the currency falls below the predetermined price, the buyer of the put option can exercise their right to sell the currency to you. It's important to carefully consider the risks and rewards of selling put options, and to have a solid understanding of the digital currency market before engaging in this strategy.