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What is the meaning of 0dte in cryptocurrency trading?

avatarDahlgaard HolmDec 28, 2021 · 3 years ago1 answers

Can you explain the meaning of 0dte in cryptocurrency trading? I've come across this term but I'm not sure what it refers to. Could you provide some insights into its significance and how it is used in the context of cryptocurrency trading?

What is the meaning of 0dte in cryptocurrency trading?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    0dte, which stands for 'zero days to expiration', is a term used in cryptocurrency options trading. It refers to options contracts that are set to expire on the same day they are opened. This type of trading strategy is popular among experienced traders who are looking to take advantage of short-term price movements in the cryptocurrency market. 0dte trading requires quick decision-making and the ability to accurately predict short-term price trends. Traders need to closely monitor the market and be prepared to exit their positions before the options expire. It is important to note that 0dte trading carries a higher level of risk compared to longer-term options trading strategies, and traders should only engage in it if they have a solid understanding of the market and are comfortable with the associated risks.