Quoted Expiry Date

Definition: Quoted Expiry Date

The Quoted Expiry Date is a fundamental term in options trading with cryptocurrencies. Simply put, it is the predetermined date on which the option contract becomes invalid or expires. After this date, the holder of the option no longer has the right to buy or sell the underlying cryptocurrency.

The Importance of Quoted Expiry Date In Cryptocurrency Options Trading

Understanding the Quoted Expiry Date is crucial in the world of options trading with cryptocurrencies. It is one of the key aspects that traders consider before taking a position in the market. The time left until the expiry date can significantly impact the price of an option. Therefore, traders need to predict how the price of the underlying cryptocurrency will move before the expiry date.

A Closer Look At Quoted Expiry Date

In options trading, short-term contracts that are close to their Quoted Expiry Date are considered more risky. This is due to the reduced time for the trader to make profits. On the other hand, an option with a longer expiry date gives the holder more time for the market to move in a favorable direction, potentially increasing the chances of a profitable outcome.

Example of Quoted Expiry Date

Assume you bought a Bitcoin call option with a Quoted Expiry Date of December 31. This means you have the right, but not the obligation, to buy Bitcoin on or before December 31. Once this date passes, the option expires and becomes worthless if not exercised.

Final Thoughts on Quoted Expiry Date

The Quoted Expiry Date plays an essential role in shaping the dynamics of cryptocurrency option trading. It's a date that both buyers and sellers of options bear in mind when planning their trading strategies. Always remember, the closer the option is to its expiry date, the riskier it becomes.