How does the strike price work in digital currency options?

1 answers

• May 07, 2022 · 3 years ago
  In the context of digital currency options, the strike price is determined at the time the option contract is created. It represents the price at which the option holder can buy or sell the underlying digital currency. The strike price is typically set based on market conditions and the desired risk-reward profile of the trader. It is important to note that the strike price is fixed and does not change throughout the life of the option contract. Traders should carefully consider the strike price when evaluating options contracts and assess the likelihood of the underlying digital currency reaching or exceeding the strike price before the option expiration date. The strike price is a key component in determining the potential profitability and risk of a digital currency options trade.
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