Crypto Options

Definition ∞ Crypto options are financial derivative contracts that grant the holder the right, but not the obligation, to buy or sell an underlying cryptocurrency at a specified price on or before a particular date. These instruments allow for speculation and hedging against price fluctuations. They offer leverage and defined risk profiles for market participants.
Context ∞ The market for crypto options is expanding, attracting both institutional and retail investors seeking sophisticated trading strategies. News often covers increasing open interest and trading volumes in Bitcoin and Ethereum options. Regulatory clarity regarding these derivatives remains a key discussion point, influencing their broader acceptance and market depth.