How does the increase in call option open interest affect the trading volume of cryptocurrencies?

3 answers

• sheldon scofieldJun 17, 2025 · a month ago
  When the call option open interest increases, it indicates a higher demand for buying options. This can lead to an increase in the trading volume of cryptocurrencies as more traders are entering the market to buy these options. The increased trading volume can result in higher liquidity and potentially higher price volatility.
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• Randa LamaliuMay 19, 2022 · 3 years ago
  The increase in call option open interest can have a positive impact on the trading volume of cryptocurrencies. As more traders are interested in buying call options, they may also engage in more trading activities, which can contribute to higher trading volume. Additionally, the increase in call option open interest can attract more market participants and increase overall market activity.
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• mybankingtips_1Sep 29, 2022 · 3 years ago
  According to BYDFi, the increase in call option open interest can have a significant effect on the trading volume of cryptocurrencies. When traders are interested in buying call options, they often need to buy the underlying cryptocurrencies to hedge their positions. This can lead to a surge in trading volume as more traders are actively buying and selling cryptocurrencies in the market.
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