Which is more commonly used in cryptocurrency trading, put spread or call spread?

1 answers

• Bagger ConnellMay 03, 2024 · a year ago
  Put spread and call spread are both commonly used in cryptocurrency trading. Put spread involves buying put options with a lower strike price and selling put options with a higher strike price. This strategy is used when traders expect the price of the underlying asset to decrease. On the other hand, call spread involves buying call options with a lower strike price and selling call options with a higher strike price. This strategy is used when traders expect the price of the underlying asset to increase. Both strategies have their advantages and disadvantages, and the choice between the two depends on the trader's market outlook and risk tolerance. It is important to carefully analyze the market conditions, consider the potential risks and rewards, and develop a trading strategy that aligns with one's investment goals and risk appetite.
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