What is the meaning of theta in the context of cryptocurrency trading?

1 answers

• May 29, 2022 · 3 years ago
  In the context of cryptocurrency trading, theta refers to the time decay of options. It measures how much the value of an option decreases as time passes. Theta is an essential concept for options traders, as it affects the pricing and profitability of options. Options with a longer time to expiration tend to have higher theta, as they have more time for the value to decay. Traders need to consider theta when choosing options strategies and timing their trades. Understanding and managing theta can help traders make more informed decisions and improve their overall trading performance.
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