How do ATM puts work in the context of digital currencies?

3 answers

• Argoitz EstebanezMay 10, 2025 · a month ago
  ATM puts, or at-the-money puts, are options contracts that give the holder the right, but not the obligation, to sell a specific amount of digital currency at a predetermined price on or before a specified expiration date. In the context of digital currencies, ATM puts allow investors to protect their holdings against potential price declines. They can be used as a form of insurance to hedge against market volatility and minimize potential losses. By purchasing ATM puts, investors can limit their downside risk while still participating in the potential upside of the digital currency market. This can be particularly useful for long-term investors who want to protect their investments in the event of a market downturn.
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• Shaik TauqeerMar 24, 2024 · a year ago
  ATM puts work by providing investors with a way to profit from a decline in the price of digital currencies. When the price of a digital currency falls below the strike price of the ATM put, the holder can exercise the option and sell the digital currency at the higher strike price, thereby realizing a profit. However, if the price of the digital currency remains above the strike price, the option expires worthless and the holder loses the premium paid for the option. It's important to note that ATM puts are just one of many options strategies available in the digital currency market, and investors should carefully consider their risk tolerance and investment goals before engaging in options trading.
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• AKHFA SHIDQIE MUTTAQIENNov 28, 2023 · 2 years ago
  In the context of digital currencies, BYDFi offers a range of options trading services, including ATM puts. BYDFi's platform allows users to easily buy and sell options contracts, including ATM puts, on a variety of digital currencies. With BYDFi, investors can take advantage of the potential benefits of ATM puts, such as downside protection and limited risk, while also benefiting from the platform's user-friendly interface and advanced trading features. Whether you're a beginner or an experienced trader, BYDFi provides a secure and reliable platform for options trading in the digital currency market.
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