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What are the advantages of using put credit spread and call debit spread in cryptocurrency trading?

Bech RitterMay 06, 2022 · 3 years ago1 answers

Can you explain the benefits of using put credit spread and call debit spread in cryptocurrency trading? How do these strategies work and why are they advantageous?

1 answers

  • May 06, 2022 · 3 years ago
    Put credit spread and call debit spread are popular strategies used in cryptocurrency trading. These strategies offer advantages such as limited risk and potential for profit. With a put credit spread, you sell a put option with a higher strike price and buy a put option with a lower strike price. This allows you to collect a premium upfront while limiting your potential losses. On the other hand, a call debit spread involves buying a call option with a lower strike price and selling a call option with a higher strike price. This strategy allows you to benefit from a bullish market while limiting your upfront investment. These strategies can be effective in managing risk and maximizing returns in cryptocurrency trading.