Cryptocurrency Q&A
What is the point of max pain?
What is the point of max pain?
Luca
Wed Dec 25 2024
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5 answers
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I'm trying to understand the concept of 'max pain'. What does it represent and why is it important? I'm looking for a clear explanation of this term and its significance.
5 answers
Giulia
Fri Dec 27 2024
Max pain, or Maximum Pain, represents a financial theory that describes a specific market behavior on expiry day.
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KpopMelody
Thu Dec 26 2024
The concept of Max pain highlights the complex interplay between options buyers and sellers and their impact on market movements.
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HallyuHype
Thu Dec 26 2024
According to this theory, the price of the underlying index or stock tends to shift towards a specific level.
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TaegeukChampion
Thu Dec 26 2024
This price point is determined by its ability to cause the greatest loss, or "pain," to the largest number of options buyers.
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Martino
Thu Dec 26 2024
Conversely, it also implies a scenario where option sellers experience the minimum possible loss.
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