How Do Over-the-Counter (OTC) Crypto Options Sometimes Differ in Style from Exchange-Traded Ones? ▴ Learn

How Do Over-the-Counter (OTC) Crypto Options Sometimes Differ in Style from Exchange-Traded Ones?

OTC crypto options are private, customized agreements between two parties, often large institutions. Unlike standardized exchange-traded options, OTC options can be tailored to any strike price, expiration date, and even exercise style, including non-standard structures like Asian or lookback options.

They offer flexibility but introduce counterparty risk.

Are Crypto Derivatives Traded OTC?

What Is the Difference between a Cleared and an Over-the-Counter (OTC) Derivative?

Are All Over-the-Counter (OTC) Derivatives Subject to Mandatory Clearing and Novation?

How Does a European-Style Option Differ from an American-Style Option in This Context?