How does after-hours trading impact the value of cryptocurrency options?

3 answers

• Mar 19, 2022 · 3 years ago
  After-hours trading can have an impact on the value of cryptocurrency options. During after-hours trading, the trading volume is typically lower, which can lead to wider bid-ask spreads and increased volatility. This can result in higher option prices as market participants demand higher premiums for the increased risk. Additionally, after-hours trading may be subject to lower liquidity, which can further impact option prices. It's important to note that the impact of after-hours trading on option prices can vary depending on the specific cryptocurrency and market conditions.
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• Mar 19, 2022 · 3 years ago
  When it comes to after-hours trading and cryptocurrency options, it's all about supply and demand. With fewer participants trading during after-hours, the liquidity in the market decreases, which can lead to wider spreads and potentially higher option prices. This is because there may be fewer buyers and sellers willing to transact at certain prices, resulting in less efficient pricing. However, it's worth noting that the impact of after-hours trading on option prices can vary depending on the specific cryptocurrency and the overall market sentiment.
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• Mar 19, 2022 · 3 years ago
  After-hours trading can indeed impact the value of cryptocurrency options. At BYDFi, we've observed that during after-hours trading, there is often lower liquidity and higher volatility, which can lead to wider bid-ask spreads and potentially higher option prices. This is because there may be fewer market participants actively trading, which can result in less efficient pricing. However, it's important to consider that the impact of after-hours trading on option prices can vary depending on the specific cryptocurrency and market conditions.
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