What is the sweet spot for theta decay?
Could you elaborate on the concept of THETA decay and what exactly constitutes the 'sweet spot' for it in the context of cryptocurrency and finance? How does understanding this concept help traders and investors make informed decisions in the market?
Does theta decay when market is closed?
Does theta decay occur even when the market is closed? Is the decay process continuous regardless of trading hours, or does it pause during non-trading periods? Is theta decay solely determined by market forces, or are there other factors at play? Could the closing of the market have any impact on the rate or magnitude of theta decay? Is it possible to predict how theta decay will behave during off-market hours?
Does crypto have theta decay?
Could you please clarify for me whether or not cryptocurrency experiences theta decay? I've heard conflicting opinions about this, and I'm trying to get a clear understanding of the concept. Theta decay, as I understand, typically refers to the loss of value over time in certain financial instruments due to time decay. Does this concept apply to cryptocurrencies as well? If so, how does it manifest and what factors contribute to it? Alternatively, if crypto is exempt from theta decay, what are the reasons for this exemption? I'm eager to learn more about this topic and would greatly appreciate your insights.