How does a call vertical spread work in the context of cryptocurrency trading?

1 answers

• Atmajan MKApr 23, 2024 · a year ago
  In the context of cryptocurrency trading, a call vertical spread is a strategy that involves buying and selling call options with different strike prices but the same expiration date. This strategy allows traders to profit from both upward and downward price movements of the underlying cryptocurrency. By buying a call option with a lower strike price and selling a call option with a higher strike price, traders can potentially profit from an increase in the price of the cryptocurrency. Conversely, by buying a call option with a higher strike price and selling a call option with a lower strike price, traders can potentially profit from a decrease in the price of the cryptocurrency. This strategy can be used to manage risk and potentially increase returns in cryptocurrency trading.
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