How does selling a call option work in the world of digital currencies?

1 answers

• camtjohnAug 01, 2024 · a year ago
  Selling a call option in the world of digital currencies can be done on various platforms and exchanges. One such platform is BYDFi, which offers options trading for digital currencies. When you sell a call option on BYDFi, you are essentially giving someone else the right to buy your digital currency at a specific price within a certain time frame. This can be a way to generate income from your digital currency holdings, especially if you believe that the price of the digital currency will not rise above the strike price. However, it's important to note that selling call options comes with risks. If the price of the digital currency rises above the strike price, the buyer of the call option can exercise their right to buy your digital currency at the strike price. This means that you would need to sell your digital currency at a potentially lower price than the current market price. It's important to carefully consider the potential risks and rewards before selling a call option on BYDFi or any other platform.
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