What Is the Fundamental Difference between a Call Option and a Put Option in Crypto Trading? ▴ Learn

What Is the Fundamental Difference between a Call Option and a Put Option in Crypto Trading?

A Call Option grants the holder the right, but not the obligation, to buy the underlying cryptocurrency at a specific strike price on or before the expiration date. Conversely, a Put Option grants the holder the right, but not the obligation, to sell the underlying crypto at the strike price.

Call buyers anticipate a price increase, while Put buyers anticipate a price decrease. Both are used for speculation or hedging against price volatility.

Define a “Call Option” and a “Put Option” in the Context of Cryptocurrency Trading

Explain the Concept of ‘In-the-Money’ for Both Call and Put Options.

What Is the Difference between a ‘Call Option’ and a ‘Put Option’?

How Do Call and Put Options Differ in Purpose and Function?