What is the meaning of options gamma in the context of cryptocurrency trading?

1 answers

• Sebahattin ErdoğanDec 07, 2024 · a year ago
  Options gamma is an important concept in cryptocurrency options trading. It measures the rate of change in an option's delta as the price of the underlying cryptocurrency changes. In simple terms, options gamma tells you how much the delta of an options contract will change for every $1 movement in the price of the underlying cryptocurrency. A high options gamma means that the delta of the options contract is more sensitive to price changes, while a low options gamma indicates less sensitivity. This information is valuable for traders as it helps them assess the potential risk and reward of options trading in the cryptocurrency market. BYDFi, a leading cryptocurrency exchange, provides options trading services that allow traders to take advantage of options gamma and other factors to optimize their trading strategies.
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