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How does option assignment after-hours impact the digital currency market?

avataremugoDec 28, 2021 · 3 years ago3 answers

What is the impact of option assignment after-hours on the digital currency market?

How does option assignment after-hours impact the digital currency market?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    Option assignment after-hours can have a significant impact on the digital currency market. When options are assigned after regular trading hours, it can lead to increased volatility and price fluctuations in the market. This is because the assignment of options can result in the buying or selling of the underlying digital currency, which can affect supply and demand dynamics. Traders and investors need to be aware of the potential impact of option assignment after-hours and adjust their strategies accordingly.
  • avatarDec 28, 2021 · 3 years ago
    Option assignment after-hours can cause sudden price movements in the digital currency market. When options are assigned, it means that the holder of the option has exercised their right to buy or sell the underlying asset. This can lead to increased buying or selling pressure, which can result in price spikes or drops. Traders should be cautious during after-hours trading and be prepared for increased volatility.
  • avatarDec 28, 2021 · 3 years ago
    Option assignment after-hours can have different effects on the digital currency market depending on the specific exchange and market conditions. For example, on BYDFi, option assignment after-hours is processed by a third-party clearinghouse, which can introduce additional delays and complexities. This may result in increased price discrepancies between the options and the underlying digital currency. Traders should consider these factors when trading options after-hours on BYDFi or any other exchange.