How Does the Concept of "Slippage" in Options Trading Relate to the Loss of Potential Earnings from Rejected Shares? ⎊ Path

How Does the Concept of “Slippage” in Options Trading Relate to the Loss of Potential Earnings from Rejected Shares?

Slippage in options trading is the difference between the expected price of a trade and the actual executed price. The loss of potential earnings from rejected shares (stale or invalid) is analogous to slippage because it represents the difference between the miner's expected earnings (based on their raw hash rate) and their actual earnings (after rejections).

The rejected shares represent "lost" execution of work.

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Glossar

Rejected Shares

Definition ⎊ Rejected shares are computational work submissions from a miner to a mining pool that are deemed invalid because they are based on an outdated block template or contain errors.

Equity ⎊ The term "Shares," within the context of cryptocurrency derivatives and financial engineering, fundamentally denotes a proportional ownership stake, mirroring its traditional equity counterpart.

Expected Earnings

Projection ⎊ Anticipated earnings within cryptocurrency derivatives, options trading, and related financial instruments represent a forward-looking valuation derived from modeling underlying asset price movements and contract terms.