Which is more commonly used in cryptocurrency trading, put spread or call spread?

In cryptocurrency trading, which type of spread, put spread or call spread, is more commonly used? What are the differences between the two and how do they affect trading strategies? Are there any specific situations where one type of spread is preferred over the other?

1 answers
- Put spread and call spread are both commonly used in cryptocurrency trading. Put spread involves buying put options with a lower strike price and selling put options with a higher strike price. This strategy is used when traders expect the price of the underlying asset to decrease. On the other hand, call spread involves buying call options with a lower strike price and selling call options with a higher strike price. This strategy is used when traders expect the price of the underlying asset to increase. Both strategies have their advantages and disadvantages, and the choice between the two depends on the trader's market outlook and risk tolerance. It is important to carefully analyze the market conditions, consider the potential risks and rewards, and develop a trading strategy that aligns with one's investment goals and risk appetite.
Mar 20, 2022 · 3 years ago
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