In Cryptocurrency Options, What Is the Typical Underlying Asset?
The typical underlying assets for cryptocurrency options are major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These options contracts grant the holder the right, but not the obligation, to buy or sell a specified amount of the underlying crypto at a set price before or on a specific date.
Options on smaller altcoins are less common but exist on some platforms.
Glossar
Options Contracts
Contract ⎊ Options contracts within cryptocurrency represent a derivative instrument granting the holder the right, but not the obligation, to buy or sell an underlying digital asset at a predetermined price on or before a specific expiration date.
Major Cryptocurrencies
Capital ⎊ Major cryptocurrencies are defined by their substantial market capitalization, representing the largest pools of digital capital and serving as the primary benchmark assets for the entire crypto ecosystem.
Cryptocurrency Options
Stewardship ⎊ Involves the responsible structuring of these contracts to facilitate the financing of tokenized assets with verifiable sustainability metrics.
Crypto Derivatives
Valuation ⎊ Crypto derivatives represent financial contracts whose value is derived from an underlying cryptocurrency asset, extending traditional derivative concepts to the digital asset space.
Specified Amount
Denomination ⎊ The specified amount refers to the precise, contractually defined quantity of the underlying asset or currency unit that forms the basis of a financial derivative, such as a futures or options contract.
Typical Underlying Assets
Asset ⎊ The term "Typical Underlying Assets" within cryptocurrency derivatives, options trading, and broader financial derivatives contexts refers to the foundational instruments upon which derivative contracts are built.