Which type of spread, diagonal or calendar, is more commonly used in the cryptocurrency market?

3 answers

• Nada Kamel abd El-HafezJun 02, 2025 · 2 months ago
  Diagonal spreads are more commonly used in the cryptocurrency market. This type of spread involves buying and selling options with different strike prices and expiration dates. It allows traders to take advantage of both time decay and changes in the underlying asset's price. Diagonal spreads offer more flexibility and potential profit compared to calendar spreads.
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• liran haimOct 07, 2020 · 5 years ago
  Calendar spreads are the preferred choice in the cryptocurrency market. Traders often use this type of spread to profit from time decay. A calendar spread involves buying and selling options with the same strike price but different expiration dates. It allows traders to take advantage of the difference in time value between the two options. Calendar spreads are less risky and require less capital compared to diagonal spreads.
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• aisha aliSep 08, 2021 · 4 years ago
  In the cryptocurrency market, both diagonal and calendar spreads are commonly used. The choice between the two depends on the trader's strategy and market conditions. Diagonal spreads offer more flexibility and potential profit, but they also carry more risk. Calendar spreads are less risky and require less capital, but the potential profit is limited. Traders should carefully consider their risk tolerance and market outlook before deciding which type of spread to use.
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