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What are the advantages of using put credit spread and call debit spread in cryptocurrency trading?

avatarOperational ManagerNov 27, 2021 · 3 years ago1 answers

Can you explain the benefits of using put credit spread and call debit spread in cryptocurrency trading? How do these strategies work and why are they advantageous?

What are the advantages of using put credit spread and call debit spread in cryptocurrency trading?

1 answers

  • avatarNov 27, 2021 · 3 years ago
    Put credit spread and call debit spread are popular strategies used in cryptocurrency trading. These strategies offer advantages such as limited risk and potential for profit. With a put credit spread, you sell a put option with a higher strike price and buy a put option with a lower strike price. This allows you to collect a premium upfront while limiting your potential losses. On the other hand, a call debit spread involves buying a call option with a lower strike price and selling a call option with a higher strike price. This strategy allows you to benefit from a bullish market while limiting your upfront investment. These strategies can be effective in managing risk and maximizing returns in cryptocurrency trading.