Options
derivatives · trading
Derivatives granting the right, not the obligation, to buy (call) or sell (put) an asset at a specified strike price by a certain date.
Options are contracts that provide asymmetric exposure to price moves. Buyers pay a premium; sellers collect premium and take on obligations.
Pricing and risk use the “Greeks” (delta, gamma, theta, vega). Implied volatility strongly influences premium levels.
Related terms
Futures
→Futures are derivatives for long or short exposure to an asset; crypto markets commonly use perpetual futures with no expiry.
trading · derivatives
Leverage
→Borrowed or synthetic exposure that increases position size, amplifying both gains and losses.
markets · derivatives
Liquidation
→The forced closure of a leveraged position when collateral falls below required margin.
markets · derivatives