Derivatives & Risk

What is the difference between a call option and a put option?

A call option gives the holder the right, not the obligation, to buy an asset at a set price before a deadline, while a put option gives the right to sell at a set price. Calls are typically used when a trader expects the price to rise; puts when they expect it to fall or want downside protection. For example, a put on Bitcoin lets the holder sell at the strike even if the market drops below it. Options are contracts with defined cost and expiry, structured differently from holding the asset directly. Understanding instruments like these supports clearer thinking about portfolio risk.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.