How does the spot price of a cryptocurrency differ from its strike price?

Can you explain the difference between the spot price and the strike price of a cryptocurrency in simple terms?

3 answers
- Sure! The spot price of a cryptocurrency refers to its current market price, which is the price at which it can be bought or sold immediately. On the other hand, the strike price is a predetermined price at which a cryptocurrency option can be bought or sold in the future. So, while the spot price is the real-time price of a cryptocurrency, the strike price is a fixed price set for a future transaction.
Mar 06, 2022 · 3 years ago
- The spot price of a cryptocurrency is like the price you see on a ticker tape or on a cryptocurrency exchange. It's the price you would pay if you wanted to buy or sell the cryptocurrency right now. On the other hand, the strike price is a price that is agreed upon in advance for a future transaction. It's like a contract that sets the price at which you can buy or sell the cryptocurrency at a later date.
Mar 06, 2022 · 3 years ago
- The spot price of a cryptocurrency is the current market price, while the strike price is the price at which a specific option can be exercised. For example, let's say you have a call option for a certain cryptocurrency with a strike price of $10,000. If the spot price of the cryptocurrency is above $10,000 when the option expires, you can exercise the option and buy the cryptocurrency at the strike price. However, if the spot price is below $10,000, it wouldn't make sense to exercise the option and you would let it expire.
Mar 06, 2022 · 3 years ago
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