Skip to main content

In What Ways Can a Stablecoin Be Used in Options Trading?

Stablecoins serve as the preferred collateral or settlement asset for crypto derivatives, including options. They allow traders to realize profits or cover losses in a non-volatile asset, avoiding exposure to the underlying cryptocurrency's price swings.

This provides a reliable medium of exchange for margin and premium payments. Using stablecoins minimizes counterparty risk related to asset volatility in the settlement process.

Can a Trader Use Other Assets as Collateral to Meet a Margin Call?
What Is the Typical Frequency of Funding Rate Payments on Major Crypto Exchanges?
Can a DAO Be Recognized as a ‘Non-Profit Organization’?
What Is the Typical Frequency for Funding Rate Payments in Perpetual Swap Markets?