Pi42 Blog

India's 1st Crypto-INR Perpetual Futures Trading Platform

Pi42 Blog

India's 1st Crypto-INR Perpetual Futures Trading Platform

crypto options

Synthetic Positions in Crypto Trading: Replicating Futures with Options

Crypto markets are volatile and fast-moving, making efficient hedging and leverage essential for active traders. While futures contracts are the go-to for leveraged exposure, they come with risks like liquidation and funding fees. Enter synthetic positions. These setups let you replicate the payoff of a futures position using options, often with defined risk and more […]

How Option Trading Volume and Options Order Flow Predict Moves in Crypto

In crypto options markets, price is just the surface. To get real insights, traders look deeper, at options order flow and option trading volume. These data points tell the story of who’s buying, what they’re targeting, and how aggressively they’re positioning. Whether you’re day trading or managing a directional portfolio, understanding orderflow in options and […]

Option Adjustment Strategies: How to Adjust Options Strategy Mid-Trade

Even the best-planned trades can run into surprises. Prices shift, volatility spikes, news breaks. That’s why knowing option adjustment strategies mid-trade is crucial. It helps traders manage risk, protect profits, and avoid unnecessary losses. This guide covers options trade adjustments, how to spot signals, and the most effective ways to execute them on platforms like […]

When to Exit Options Trades: Smart Strategies for Crypto Traders

Most traders obsess over entry points, but in options trading, especially in crypto, knowing how & when to exit options trade separates pros from amateurs. Whether you’re locking in profits, cutting losses, or adjusting risk exposure, having an option trading exit strategy is critical. This guide explores when to exit an options trade, practical crypto […]

Cash-Settled v/s Physically-Settled Options: What Crypto Traders Need to Know

Key Takeaways: When you trade crypto options, it’s not just about the direction of the market—it’s also about how the trade is settled. The two main types of settlement are cash settled options and physically settled options, and they work very differently. Knowing which type you’re trading isn’t just a technical detail—it can directly affect […]

How Options Are Priced in Crypto Markets

For crypto options traders, understanding how options are priced is essential for making informed decisions. Whether you’re buying a call on Bitcoin or selling a put on Ethereum, the option premium you pay or collect is determined by mathematical options pricing models. The two most widely used models are: Learn More: Difference Between European Options […]

Understanding Crypto Options Liquidity and Options Slippage: Orderbooks Explained

Key Takeaways You’ve chosen the right strike, expiry, and even timed the market perfectly—but your trade still performs poorly. Why? The answer often lies in options slippage and options liquidity in crypto. In this article, we’ll decode what is an orderbook in options, bid-ask spreads, and market depth—the invisible forces that shape every crypto options […]

Margin in Options vs Margin in Futures: Understanding Requirements on Pi42

Key Takeaways: Why Margin Matters in Crypto Derivatives If you’re trading crypto options or futures, margin in options and margin in futures directly impact how much capital you need to open and maintain a position. On Pi42, understanding the margin rules for each segment helps you manage risk, avoid liquidations, and maximize capital efficiency. Let’s […]

Crypto Options Portfolio: Risk-Reward Frameworks for Traders

In crypto markets, volatility is both an opportunity and a threat. To succeed consistently, traders need more than just good timing—they need a smart, risk-managed options portfolio approach. This is where a well-structured crypto options portfolio built on risk-reward frameworks becomes your edge. 1. Understanding the Crypto Options Portfolio What Is an Options Portfolio? An […]

Basic Crypto Options Trading Strategies: Long Call, Long Put, Protective Put, Covered Call

Key Takeaways: You’ve heard the buzz around crypto options trading strategies. But how do you actually use them? Whether you’re bullish, bearish, or protecting gains, options trading for beginners starts with mastering the basics. These strategies offer flexibility, defined risk, and creative ways to trade Bitcoin, Ethereum, and other assets. This guide will break down […]

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