.DeribitExchange registered record BTC and ETH options trading volume in November as market volatility and fear boosted demand for hedging tools. Reports godbole17
"Market Volatility and overall fear and unrest have resulting in trading opportunities but perhaps more importantly clients were able to hedge existing portfolios," Deribit said in its monthly newsletter.
"Deribit has seen new record volumes in our options settlement as 778,000 BTC and 8.9 million ETH options contracts were traded in November," Deribit added. Options are derivative contracts that offer the purchaser the right to buy or sell the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy and is akin to purchasing insurance against price rallies. The put option is a bearish bet offering the purchaser the right to sell.
Therefore, the demand for options is closely tied to the degree of uncertainty in the market. The higher the uncertainty, the greater the demand and activity in options.protective puts in bitcoin, ether and Solana's SOL token in the wake of the negative news flow related to FTT. "Options are great tools for risk management. They enable the ability to focus on more nuanced outcomes," Richard Rosenblum, co-founder of crypto trading firm and liquidity provider GSR, tweeted, referring to the increase in activity on Deribit.
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