Which Major Crypto Options Exchanges Offer American-Style Options, and What Is Their Typical Settlement?
While some early or smaller platforms offered American-style options, major, regulated crypto derivatives exchanges like CME Group primarily offer European-style options on Bitcoin and Ethereum futures. Deribit, a leading crypto-native exchange, predominantly offers European-style options on spot learn.
The European style remains the standard in the institutional crypto options space due to its pricing simplicity and synergy with futures markets.
Glossar
Crypto Derivatives Exchanges
Venue ⎊ Crypto Derivatives Exchanges are specialized trading platforms offering standardized futures, options, and perpetual swaps based on digital assets, often requiring significant collateral management infrastructure.
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.
Crypto Options Exchanges
Volatility ⎊ Crypto options exchanges facilitate the transfer of volatility risk associated with underlying cryptocurrency assets, functioning as centralized or decentralized marketplaces where participants can buy and sell call and put options.