Name a Major Difference between a Centralized Exchange (CEX) and a Decentralized Exchange (DEX) for Options Trading

A major difference is the custody of funds and collateral. On a CEX, the exchange holds the funds and acts as the central counterparty, providing security and clearing services.

On a DEX, smart contracts manage the collateral and execution, and users retain custody of their assets, leading to a trustless, permissionless environment.