What are the advantages of using put sell to open in the digital currency trading?

3 answers

• Raman KumarJul 22, 2021 · 4 years ago
  Using put sell to open in digital currency trading can provide several advantages. Firstly, it allows traders to generate income by selling put options. This strategy involves selling a put option with the expectation that the price of the underlying asset will not fall below the strike price before expiration. If the price remains above the strike price, the option expires worthless and the trader keeps the premium received. Secondly, put sell to open can be used to enter a long position at a lower cost. By selling a put option, traders can potentially buy the underlying asset at a lower price if the option is exercised. This can be beneficial for investors who want to acquire digital currencies at a discounted price. Lastly, put sell to open can be a hedging strategy. Traders can sell put options to protect their existing long positions in digital currencies, providing downside protection in case of price declines. Overall, put sell to open offers income generation, cost reduction, and hedging opportunities in digital currency trading.
  1053

  527
• PAN-YANJun 15, 2022 · 3 years ago
  Put sell to open is a great strategy for digital currency trading. It allows traders to profit from selling put options, which can generate income and provide downside protection. By selling put options, traders can collect premiums and keep them if the options expire worthless. This strategy can be especially useful in volatile markets, where traders can take advantage of high premiums. Additionally, put sell to open can be used to enter a long position at a lower cost. If the put option is exercised, traders can buy the underlying asset at a discounted price. This strategy is popular among investors who want to acquire digital currencies at a lower cost. Overall, put sell to open offers multiple advantages in digital currency trading.
  746

  249
• Dewi SyahfitriJul 05, 2022 · 3 years ago
  When it comes to digital currency trading, using put sell to open can be a game-changer. This strategy allows traders to sell put options and profit from the premiums received. By selling put options, traders can generate income and potentially acquire digital currencies at a lower cost. This strategy is particularly useful in volatile markets, where premiums can be high. Moreover, put sell to open can act as a hedging strategy. Traders can sell put options to protect their existing long positions in digital currencies, mitigating potential losses in case of price declines. This strategy offers a unique combination of income generation and risk management in digital currency trading. Give it a try and see the benefits for yourself!
  741

  186