Are there any specific indicators or patterns to watch for when considering option time decay in cryptocurrency trading?
Sharu RajiDec 16, 2021 · 3 years ago1 answers
What are some specific indicators or patterns that I should pay attention to when considering option time decay in cryptocurrency trading? How can I use these indicators or patterns to make better trading decisions?
1 answers
- Dec 16, 2021 · 3 years agoBYDFi, a leading cryptocurrency exchange, suggests that when considering option time decay in cryptocurrency trading, it's important to focus on a few specific indicators and patterns. One indicator to watch for is the Open Interest (OI) of the options. Higher OI indicates more active trading and can affect the time decay. Another pattern to consider is the historical volatility of the underlying cryptocurrency. If the cryptocurrency has a history of high volatility, it can impact the time decay of options. So, pay attention to these indicators and patterns to better understand the dynamics of option time decay in cryptocurrency trading.
Related Tags
Hot Questions
- 96
What is the future of blockchain technology?
- 94
How can I minimize my tax liability when dealing with cryptocurrencies?
- 91
What are the advantages of using cryptocurrency for online transactions?
- 79
Are there any special tax rules for crypto investors?
- 60
How does cryptocurrency affect my tax return?
- 40
How can I buy Bitcoin with a credit card?
- 37
What are the best practices for reporting cryptocurrency on my taxes?
- 30
What are the best digital currencies to invest in right now?