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BTC

Currency of Put Option Premium: BTC or USD?

The question concerns the currency in which the proceeds from selling a Bitcoin put option are deposited. When selling a BTC put, the premium received, which is 0.0001 BTC in this scenario, is credited in Bitcoin units to your trading account, not directly in dollars. The actual dollar value of this amount depends on the current BTC/USD exchange rate at the time of settlement or account valuation. It is crucial to distinguish between the currency denomination of the transaction and its equivalent monetary value in fiat currency.
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AI Analysis

When you sell a Bitcoin put option, the premium you receive is denominated in Bitcoin, specifically 0.0001 BTC in this case. This means that directly after the trade, your account reflects an increase...

AI Recommendation

To manage your position effectively, always monitor the current BTC/USD rate to understand the USD equivalent of any Bitcoin-denominated premium. Be prepared for potential volatility in USD terms, eve...

Disclaimer

The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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