TL;DR
Deribit simply opened BTC & ETH choices that expire 4 days after the election, so traders can safeguard themselves relying on who wins (and with that, pour slightly additional money into crypto within the lead up).
Full Story
Do you utilize the 7-Eleven app?
In all probability not.
However should you did, you would possibly know that you should use it to ‘lock’ gas costs for 7 days — the thought being, should you suppose gasoline is about to get costlier, you’ll be able to lock in decrease costs forward of time.
That’s type of how choices buying and selling works.
You buy the choice to purchase/promote an asset at a set value, at a sure date sooner or later.
We’re telling you this as a result of Deribit (the world’s largest Bitcoin and Ethereum choices alternate) simply introduced they’d be permitting clients to purchase the choice to both buy or promote BTC & ETH, 4 days after the US election.
Why does that matter?
Trigger Biden is seen as anti-crypto, whereas Trump is seen as pro-crypto — and the market goes to react primarily based on who wins.
So now traders can decrease their danger utilizing these choices (e.g. if Biden wins, they may wish to lock-in the choice to promote at a set value increased than what may be anticipated in that scenario).
And with these safe-guards in place, it means traders would possibly really feel slightly extra snug pouring slightly additional money into crypto within the lead up.
Good!
