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What is the impact of option adjusted spread on cryptocurrency trading?

avatarJadid idDec 25, 2021 · 3 years ago1 answers

Can you explain how option adjusted spread affects cryptocurrency trading and what its impact is?

What is the impact of option adjusted spread on cryptocurrency trading?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    As a representative of BYDFi, I can say that option adjusted spread (OAS) does have an impact on cryptocurrency trading. OAS is a measure of the spread between the risk-free interest rate and the yield of a particular cryptocurrency, taking into account the embedded options in the cryptocurrency. This measure can influence the pricing and valuation of the cryptocurrency, which can in turn affect trading decisions. Traders should consider the OAS along with other factors when evaluating the potential risks and rewards of a cryptocurrency. However, it's important to note that the impact of OAS may vary depending on the specific cryptocurrency and market conditions. Therefore, it's crucial for traders to conduct thorough research and analysis before making any trading decisions.