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How does the assignment of options work in the world of digital currencies?

Muthukumari MMay 01, 2022 · 3 years ago1 answers

Can you explain how the assignment of options works in the world of digital currencies? I'm interested in understanding the process and how it differs from traditional options trading.

1 answers

  • May 01, 2022 · 3 years ago
    At BYDFi, the assignment of options in the world of digital currencies follows a similar process to traditional options trading. When an options contract is assigned, it means that the holder of the contract has exercised their right to buy or sell the underlying digital currency at the specified price. This can happen if the options contract is in-the-money at expiration. Once assigned, the buyer of the options contract can proceed with the transaction and buy or sell the digital currency at the agreed-upon price. It's important to carefully consider the risks and rewards before engaging in options trading, as it can be a complex and volatile market.