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How does buying a call option affect your cryptocurrency investment?

Rufina OkpeSep 27, 2021 · 4 years ago1 answers

What impact does purchasing a call option have on your investment in cryptocurrencies?

1 answers

  • qing.xianMar 18, 2024 · a year ago
    When you buy a call option for a cryptocurrency, you're essentially betting that the price of the cryptocurrency will increase. If the price does go up, you can exercise the option and buy the cryptocurrency at a lower price than the market value, allowing you to make a profit. However, if the price doesn't rise above the strike price, the option may expire worthless, and you would lose the premium paid for the option. It's important to carefully assess the market conditions and the potential risks before buying a call option for your cryptocurrency investment.

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