How can call and put options be used to hedge against price volatility in cryptocurrencies?

1 answers

• May 06, 2022 · 3 years ago
  Sure thing! Call options enable investors to profit from price increases in cryptocurrencies by giving them the right to buy at a predetermined price. Put options, on the other hand, allow investors to profit from price declines in cryptocurrencies by giving them the right to sell at a predetermined price. By using call and put options, investors can hedge against price volatility in cryptocurrencies and protect their investments. It's important to note that options trading involves risks, and it's advisable to seek professional advice and thoroughly understand the mechanics of options before engaging in such strategies.
  628

  314