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How do end-of-day options on cryptocurrencies expire?

avatardaniyarNov 24, 2021 · 3 years ago3 answers

Can you explain the process of expiration for end-of-day options on cryptocurrencies?

How do end-of-day options on cryptocurrencies expire?

3 answers

  • avatarNov 24, 2021 · 3 years ago
    Sure! When it comes to end-of-day options on cryptocurrencies, the expiration process is quite straightforward. These options contracts have a fixed expiration time, which is usually at the end of the trading day. Once the expiration time is reached, the options contracts are automatically settled. If the options are in-the-money, meaning the strike price is favorable compared to the current market price, the options holder will receive the predetermined payout. On the other hand, if the options are out-of-the-money, the options will expire worthless and the holder will lose the premium paid for the options contract. It's important to note that the expiration process may vary slightly depending on the specific exchange and the terms of the options contract.
  • avatarNov 24, 2021 · 3 years ago
    End-of-day options on cryptocurrencies expire at the end of the trading day, just as the name suggests. At this point, the options contracts are settled based on the current market price. If the options are profitable, the holder can choose to exercise them and receive the payout. However, if the options are not profitable, they will expire worthless and the holder will lose the premium paid. It's important to keep track of the expiration time and make informed decisions based on market conditions.
  • avatarNov 24, 2021 · 3 years ago
    When it comes to end-of-day options on cryptocurrencies, the expiration process is handled by the exchange. At BYDFi, for example, the options contracts expire at the end of the trading day. The settlement is automatically done based on the prevailing market price. If the options are profitable, the holder will receive the payout. Otherwise, the options will expire worthless. It's important to understand the expiration process and consider factors such as market volatility and price movements when trading options on cryptocurrencies.