What are the advantages and disadvantages of using debit spreads in the digital currency space?

1 answers

• Girija PoppawalluDec 23, 2020 · 5 years ago
  Debit spreads are a popular strategy in the digital currency space as they offer a way to limit downside risk while still allowing for potential profit. By buying and selling options with different strike prices, traders can reduce the cost of the trade by receiving a premium from selling the higher strike price option. This premium helps offset the cost of buying the lower strike price option. However, it's important to note that the potential profit is limited to the difference between the strike prices minus the net debit paid. Traders should carefully consider their risk tolerance and trading goals before implementing debit spreads in the digital currency space. It's always a good idea to consult with a financial advisor or conduct thorough research before making any investment decisions.
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