Low risk
When markets are volatile, spot leverage, perpetual contracts, and delivery contracts all carry liquidation risk. In contrast, option holders carry no risk of losing their positions through liquidation. Simultaneously, options traders have limited losses. The maximum loss is the cost of purchasing the option.
High Yield
Theoretically, there are no limits to the returns on options. For example, if the underlying price rises significantly, the call option will yield the same gain for the trader. Similarly, if a user purchases a put option, a significant decline in the underlying price will result in the same positive return for the trader.
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