Why do people trade SPX?

The cash-settled nature of SPX options is a key feature that sets it apart from other trading instruments. This means that upon expiration, the difference between the strike price and the settlement value of the SPX index is settled in cash, eliminating the need for physical delivery of shares.

As a result, investors trading SPX options do not have to worry about the potential for early assignment, which can occur with other types of options. This provides a sense of certainty and predictability, making SPX options a popular choice for traders seeking a cleaner and more straightforward way to trade.

For options sellers, the fact that SPX options are only assigned at expiration is particularly advantageous. It allows them to manage their risk more effectively, as they know exactly when their obligation to deliver or receive shares will be fulfilled.

BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the diverse needs of traders in the digital asset space. Among its offerings are spot trading, which allows users to buy and sell cryptocurrencies at current market prices, and futures trading, which enables traders to speculate on the future price movements of cryptocurrencies.

In addition to its trading services, BTCC also provides a secure wallet solution for storing digital assets. This feature is essential for traders who want to keep their cryptocurrencies safe and accessible, while also taking advantage of the convenience and flexibility offered by digital wallets.