What Are the Specific Parameters That Would Be Committed in a Crypto Options Trade? ⎊ Path

What Are the Specific Parameters That Would Be Committed in a Crypto Options Trade?

The parameters committed in a crypto options trade would include all the sensitive details that could be exploited by a front-runner. These typically are the contract size (number of options), the specific strike price chosen, the premium the user is willing to pay/receive, and the type of option (call/put, buy/sell).

The commitment is a hash of these parameters plus a unique salt, hiding the user's directional bias and trade size.

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What Are the Specific Parameters That Would Be Committed in a Crypto Options Trade?

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Glossar

Crypto Options

Valuation ⎊ Crypto options, representing rights ⎊ not obligations ⎊ to buy or sell a cryptocurrency at a predetermined price before an expiration date, derive valuation from underlying asset price, time to expiry, volatility, and prevailing risk-free interest rates; models like Black-Scholes, adapted for crypto’s unique characteristics, are frequently employed, though parameter estimation presents challenges due to nascent market data and potential for manipulation.