Deribit: Launching related Bitcoin and Ethereum options for the US election! Helps in trading hedging

This site (120Btc.coM): Deribit, the largest cryptocurrency options exchange, has launched Bitcoin (BTC) and Ethereum (ETH) options related to the upcoming US presidential election. Cryptocurrency traders consider these options an important tool for managing risk and protecting capital, especially in anticipation of market volatility.

New Options Targeting Election-Related Volatility

Deribit has announced the launch of options designed to help traders respond to expected significant market volatility during the U.S. presidential election (November 4). These election expiration options are tied to Bitcoin and Ethereum, the two major cryptocurrencies in the market.

Trader Opinion: “The U.S. election is the focus of risk assets, including cryptocurrencies, and will have a binary impact on fiscal policy and financial stability. Options are an important tool to hedge against this uncertainty, so Deribit lists this The expiration period is natural. "

Potential Impact of the US Presidential Election on Cryptocurrencies

Republican candidate Trump has recently expressed support for digital assets, and his steady victory due to the shooting has also given Bitcoin a boost. Straight up.

While Trump has yet to elaborate on his plans for cryptocurrency regulation, his outreach to Bitcoin miners and planned appearance at the Bitcoin Summit have garnered support from the industry.

Launch and expiration of Deribit election options

Deribit’s election expiration options will be online at 8:00 UTC on July 18 and expire three days after the election results are announced on November 8. Each Deribit options contract represents one BTC or ETH.

Experts’ take on the new options

“These options are a smart move from Deribit; they will allow traders to position before, during and after the election, with a three-day buffer after the results are announced. Here’s the deal A great way to gain leverage and hedge risk at the same time," said Laurent Kssis, cryptocurrency ETF expert at CEC Capital.

Traditional market strategies can also be applied to cryptocurrencies

In traditional markets, traders use options to manage exposure to binary events, such as elections or corporate earnings reports. CME notes note that traders may purchase a straddle strategy, which involves buying both put and call options at the same strike price, to profit from significant price movements resulting from such an event.

The above is the detailed content of Deribit: Launching related Bitcoin and Ethereum options for the US election! Helps in trading hedging. For more information, please follow other related articles on the PHP Chinese website!