When do options contracts on digital currencies expire?
Shanjay NithiinDec 15, 2021 · 3 years ago3 answers
Can you provide more information about the expiration of options contracts on digital currencies? How long do these contracts typically last and what happens when they expire?
3 answers
- Dec 15, 2021 · 3 years agoOptions contracts on digital currencies usually have a specific expiration date. The duration of these contracts can vary, but they typically last anywhere from a few days to several months. When an options contract expires, the holder of the contract has the right to exercise the option or let it expire worthless. If the option is exercised, the holder can buy or sell the underlying digital currency at the predetermined price. If the option expires worthless, the holder loses the premium paid for the contract.
- Dec 15, 2021 · 3 years agoWhen options contracts on digital currencies expire, it's important to understand that the expiration date is the last day on which the contract can be exercised. After the expiration date, the contract becomes null and void. It's crucial for traders to keep track of the expiration dates of their options contracts to avoid any unexpected losses. Different exchanges may have different expiration dates and contract specifications, so it's essential to check the specific terms and conditions of each exchange.
- Dec 15, 2021 · 3 years agoOptions contracts on digital currencies, including Bitcoin and Ethereum, have expiration dates just like traditional financial options. These contracts are typically available in monthly or quarterly expirations. For example, the Chicago Mercantile Exchange (CME) offers Bitcoin options contracts with monthly expirations. Other exchanges may have different expiration cycles. It's important to note that options contracts can be traded or closed before the expiration date, allowing traders to exit their positions early if desired. BYDFi, a popular digital currency exchange, also offers options contracts with various expiration dates.
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