How does a delta option work in the world of digital currencies?

1 answers

• Dec 25, 2021 · 3 years ago
  In the world of digital currencies, a delta option is a financial derivative that allows traders to profit from the price movements of a specific digital currency. The delta value of the option represents the rate of change in the option's price relative to the change in the price of the underlying digital currency. A delta of 1 means the option's price will move in perfect correlation with the digital currency's price, while a delta of 0 means there is no correlation. Traders can use delta options to speculate on the direction of digital currency prices or to hedge their existing positions. However, it's important to note that delta options are complex financial instruments and should only be used by experienced traders who fully understand the risks involved.
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