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How do the after hours options prices affect the trading volume of digital currencies?

avatarJackBloomDec 19, 2021 · 3 years ago3 answers

Can the after hours options prices have an impact on the trading volume of digital currencies? How does the availability of options trading outside regular market hours affect the overall trading activity in the digital currency market?

How do the after hours options prices affect the trading volume of digital currencies?

3 answers

  • avatarDec 19, 2021 · 3 years ago
    Yes, the after hours options prices can indeed affect the trading volume of digital currencies. When options trading is available outside regular market hours, it provides an opportunity for traders to hedge their positions or speculate on the price movements of digital currencies. This increased availability of trading options can lead to higher trading volume as traders take advantage of the extended trading hours to execute their strategies.
  • avatarDec 19, 2021 · 3 years ago
    The impact of after hours options prices on the trading volume of digital currencies can vary depending on market conditions and the specific options being traded. In some cases, significant price movements in options during after hours trading can attract more traders and increase overall trading volume. However, it's important to note that after hours trading generally has lower liquidity compared to regular market hours, which can limit the impact of options prices on trading volume.
  • avatarDec 19, 2021 · 3 years ago
    As a representative of BYDFi, I can say that the after hours options prices do have an influence on the trading volume of digital currencies. At BYDFi, we have observed that when options prices experience significant changes outside regular market hours, it often leads to increased trading activity as traders react to these price movements. This highlights the importance of monitoring options prices and their impact on the overall market sentiment and trading volume.