Cryptocurrency Futures and Options
IN THIS CHAPTER
Getting to know the basics of futures and options
Trading cryptocurrency derivatives
Futures and options are two forms of a general financial instrument called derivatives. They derive their value from the price action of something else — traditionally, from financial assets like stocks, commodities, fiat (government-backed) currencies, and other market indexes. As the cryptocurrency market becomes more popular, different cryptocurrency derivatives have been popping up and are accessible to individual traders.
In this chapter I first overview the basics of futures and options trading, and then I explore how they work in the crypto market.