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Options market Meaning

The venue where options contracts are traded. In crypto, the options market is dominated by Deribit, which handles the vast majority of global crypto options volume.

Institutional investors prefer options markets because they allow for sophisticated risk management strategies. The liquidity in the options market provides valuable data, such as "Implied Volatility." This is the market's forecast of how likely the price is to change.

High implied volatility makes options more expensive. The growth of the options market is a sign of industry maturation.

Retail investors typically stick to spot trading or simple futures, while the presence of a deep options market indicates the involvement of professional market makers and hedge funds.

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