Explained: Bitcoin Options vs. Bitcoin Spot Trading
Beginner
Options
Jan 1, 2024
3 min read
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Key Takeaways:
Bitcoin options are a form of derivatives trading that involves price speculation, while Bitcoin spot trading concerns the buying and selling of BTC at its current market price.
Bitcoin options are executed at a predetermined price on or before an expiration date. Bitcoin spot settles immediately based on the agreed-upon market price.
Traders in Bitcoin options don’t need to own the underlying asset, whereas spot traders must own the asset in order to trade.