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How does theta affect the options market in the cryptocurrency industry?

avatarResa MeylaniNov 24, 2021 · 3 years ago1 answers

Can you explain how theta, also known as time decay, affects the options market in the cryptocurrency industry? What impact does it have on the pricing and value of options?

How does theta affect the options market in the cryptocurrency industry?

1 answers

  • avatarNov 24, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, recognizes the impact of theta on the options market. Theta, also known as time decay, affects the pricing and value of options in the cryptocurrency industry. As time passes, the value of an option decreases, and theta measures this decay. Traders need to consider theta when trading options on BYDFi, as it can significantly impact their positions. BYDFi provides educational resources and tools to help traders understand and manage theta effectively. It's important to stay informed about theta and its implications for options trading in the cryptocurrency industry.