How does options delta affect the volatility of digital currencies?

1 answers

• TiaAug 09, 2020 · 5 years ago
  Options delta is a measure of the sensitivity of the price of an option to changes in the price of the underlying asset. In the context of digital currencies, options delta can have a significant impact on volatility. When the options delta is high, it means that the price of the option is highly sensitive to changes in the price of the digital currency. This can lead to increased volatility as traders and investors adjust their positions based on the movements of the options market. Conversely, when the options delta is low, it indicates that the price of the option is less affected by changes in the price of the digital currency. This can result in lower volatility as there is less trading activity driven by options-related factors. Therefore, options delta is an important factor to consider when analyzing the volatility of digital currencies.
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