Cryptocurrency Q&A
How does Deribit work?
How does Deribit work?
CloudlitWonder
Fri Sep 06 2024
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7 answers
1671
Can you explain in detail how Deribit, a cryptocurrency derivatives exchange, operates? Specifically, I'm interested in understanding its platform functionality, trading mechanisms, and how it ensures security and regulatory compliance for its users? Additionally, how does it compare to other similar exchanges in terms of liquidity, fees, and supported cryptocurrencies?
7 answers
isabella_cole_psychologist
Sun Sep 08 2024
The profit, in this case, is calculated as the difference between the market price and the strike price, which equals $500.
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GangnamGlitzGlamourGloryDays
Sun Sep 08 2024
Deribit's options trading platform operates on a cash-settled basis, a feature that streamlines the settlement process significantly.
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BusanBeautyBloomingStar
Sun Sep 08 2024
Upon exercise of an option, only the realized profit is exchanged between the buyer and seller. This eliminates the need for a physical transfer of the underlying asset.
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Maria
Sun Sep 08 2024
Consider a Bitcoin call option with a strike price of $5,500. If this option expires when Bitcoin's market price is $6,000, the buyer is in profit.
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Raffaele
Sat Sep 07 2024
This $500 profit is then paid by the seller to the buyer, as per the terms of the option contract.
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