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Deribit Introduces Election Expiry Options for Bitcoin and Ether
Discover the latest offering by Deribit – Election Expiry Options for Bitcoin and Ether. Explore new possibilities in cryptocurrency trading with this innovative feature.
Leading crypto options exchange Deribit recently unveiled new options designed to help traders manage their bitcoin (BTC) and ether (ETH) positions in light of the upcoming U.S. presidential elections on Nov. 4. These election expiry options have been well-received by traders in the market.
Market Impact of U.S. Elections
The U.S. election is a significant event for risk assets, including cryptocurrencies, with potential implications for fiscal policy and financial stability. Deribit’s decision to list election expiry options for bitcoin and ether reflects the need for hedging strategies amid the uncertainty surrounding the election outcome.
Increased Volatility and Investor Focus
As the U.S. election approaches, both BTC and ETH are expected to experience heightened price volatility. This makes it crucial for investors to consider using derivatives like options to protect their portfolios. Call options guard against upward price movements, while put options provide a hedge against price declines.
Deribit’s Offering and Key Dates
Deribit’s election expiry options will become available on July 18 at 8:00 UTC and will expire on Nov. 8, three days after the election results are announced on Nov. 5. Each option contract on Deribit represents one BTC or ETH, offering traders flexibility in their positions.
Industry Feedback
Industry experts have praised Deribit’s move, emphasizing the importance of having tools like these options to navigate the market dynamics surrounding major events such as the U.S. elections. These options enable traders to leverage their positions and manage risk effectively.
Traditional Use of Options in Markets
In traditional markets, options are commonly used to manage exposure during uncertain events like elections or corporate earnings releases. Strategies like buying straddles, which involve purchasing both call and put options with the same strike price, can help traders benefit from significant price movements post-event.