What is the settlement date for options in the cryptocurrency market?
Franco KayaDec 26, 2021 · 3 years ago1 answers
Can you please explain what the settlement date refers to when it comes to options trading in the cryptocurrency market? How does it work and why is it important?
1 answers
- Dec 26, 2021 · 3 years agoIn the cryptocurrency market, the settlement date for options refers to the date on which the option contract is settled. It is the day when the buyer and seller of the option fulfill their obligations. The settlement date typically occurs a few days after the expiration of the option contract. During this time, the buyer can exercise their right to buy or sell the underlying asset, while the seller must deliver the asset if the option is exercised. The settlement date is significant as it marks the completion of the financial transactions associated with the options contract, allowing both parties to realize their gains or losses. It is an important factor to consider when engaging in options trading in the cryptocurrency market.
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