Options
Contracts giving the right (but not obligation) to buy (call) or sell (put) an asset at a specified price before expiration.
In-Depth Explanation
Options enable hedging and speculation with defined risk. Buying a call profits if price rises above strike; buying a put profits if price falls below. DeFi options (Lyra, Dopex, Premia) bring this functionality on-chain but struggle with liquidity fragmentation across strikes and expiries. Options pricing requires sophisticated volatility modeling.
Related Terms
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.