Options

Definition ∞ Options are financial derivatives that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specified expiration date. These instruments are utilized for hedging against price volatility or for speculative purposes, offering leverage and defined risk profiles. Their complexity requires careful understanding of underlying market dynamics.
Context ∞ In the digital asset markets, ‘options’ trading has gained prominence, providing sophisticated investors with tools to manage risk and express complex market views. Current discussions often involve the pricing models for crypto options, their impact on market volatility, and the regulatory scrutiny applied to these derivative products.