Research Summary
The research report focuses on the dynamics of futures and options in the crypto market. Futures are obligations to transact at a future date and price, while options provide more flexibility, giving the buyer the right but not the obligation to transact at the agreed-upon future date and price. The report highlights the unique exposure to volatility and other factors offered by options, making them highly desirable for advanced investment and risk management strategies. The report also discusses over-the-counter (OTC) derivatives, which offer increased flexibility and a wider suite of derivative instruments. The report is sourced from GSR, a leading crypto market maker.
Actionable Insights
- Understanding Derivatives: Futures and options play a crucial role in the crypto market, with futures being obligations to transact at a future date and price, and options providing more flexibility.
- Exposure to Volatility: Options offer unique exposure to volatility and other factors, making them highly desirable for advanced investment and risk management strategies.
- Over-the-Counter Derivatives: OTC derivatives offer increased flexibility and a wider suite of derivative instruments, allowing users to customize components of their trade.
- Role of GSR: GSR, a leading crypto market maker, plays a significant role in the crypto derivatives market, offering OTC services and managed solutions.
