Crypto Terms: Letter O
What is Options Market?
Options Market -
is a market where one can trade cryptocurrencies at a specific price or time.
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Let's find out Options Market meaning, definition in crypto, what is Options Market, and all other detailed facts.
An Options Market is a market that’s accessible to the general public where traders can buy or sell options. It’s regulated by the guidelines of the US or Europe.
When it comes to the crypto sector, an options market is where traders can trade digital assets at a predetermined price and time.
Before entering the options market, it’s important to understand the terms below, especially when it comes to the differences between call options and put options:
- Call options come into play when the price of an asset is expected to grow. That’s when buyers make the call purchase. On the other hand, investors sell calls when it seems like asset prices will experience a decrease in value in the not so distant future;
- Meanwhile, put options are defined as sell orders that show if an option holder is prepared to liquidate their position. In essence, call options and put options are the opposite of each other;
- The strike price is the fixed price at which the digital asset is traded;
- Greeks are specific symbols that allow to establish and evaluate the risks of options trading. For example, theta, also known as time decay, shows a change in direction of an option’s value and time. On the other hand, delta indicates how the asset’s price changes against one dollar. There are 5 Greeks in total within an options market.