Options market
The cryptocurrency options market is the trading of options contracts expressly based on crypto assets. It allows traders to buy and sell options contracts that derive their value from underlying crypto assets, just like conventional options markets do.
Without actually owning the underlying assets, crypto options give traders the chance to speculate on the price movement. These options contracts typically have a strike price, an expiration date, and a buy/sell option for the assets (call options or put options).
Crypto options can be exchanged on specific cryptocurrency options exchanges or platforms.
Depending on the platform and the particular cryptocurrency, there may be a difference in the availability of options contracts. Options on Bitcoin (BTC) are actively traded and have the highest level of liquidity, followed by Ethereum (ETH).