Options
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.
"Buying BCH calls lets you benefit from upside while limiting downside to the premium paid."
Pricing and risk use the “Greeks” (delta, gamma, theta, vega). Implied volatility strongly influences premium levels.
"High implied volatility raises option premiums for both calls and puts."
Related Terms
Futures
→A derivatives contract to buy or sell an asset at a predetermined price at a future date; in crypto, perpetual futures (no expiry) are most common.
Leverage
→Leverage uses borrowed funds to increase position size, amplifying both gains and losses.
Liquidation
→Liquidation is the forced closure of a leveraged position when collateral is insufficient to cover losses, protecting the exchange or lenders.
All terms and definitions may update as the Cryptionary improves.
