285 · Greg Magadini - Cashing in Through Exploiting Volatility
Chat With Traders
Derivatives Drive: A Divergence in Markets
The cryptocurrency market exhibits a significantly smaller derivatives market compared to spot trading, with the open interest in options for Bitcoin at only 6% of its market cap, contrasting with the S&P 500's options, which are at 200% of its market cap. This disparity indicates that market maker activities in crypto, such as hedging gamma exposure through underlying asset purchases, are not as impactful as in traditional stock markets. As a result, the influence of options trading on price dynamics in the crypto space is considerably limited.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
