What are the potential risks associated with using strangle options in the cryptocurrency industry?

1 answers

• Kovid KavishJul 30, 2022 · 3 years ago
  When using strangle options in the cryptocurrency industry, it is crucial to consider the liquidity of the options market. Low liquidity can result in wider bid-ask spreads, making it more difficult to enter and exit positions at favorable prices. Traders should also be aware of the potential for market manipulation in the cryptocurrency industry, which can impact the pricing and execution of options trades. It is advisable to trade strangle options on reputable exchanges with high trading volumes to minimize the risk of encountering these issues. Additionally, traders should be mindful of the potential tax implications of trading options in their jurisdiction and seek professional advice if needed.
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