Cryptocurrency Q&A
What is the max pain value?
What is the max pain value?
Valentina
Mon Dec 23 2024
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5 answers
880
I'm trying to understand the concept of max pain in the financial markets. Specifically, I want to know what the max pain value represents and how it's calculated. Can someone explain this to me in simple terms?
5 answers
Enrico
Tue Dec 24 2024
The max pain price is the level where the majority of these contracts are standing.
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HallyuHype
Tue Dec 24 2024
When the market reaches this price at expiration, it would result in the largest number of option holders experiencing financial losses.
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Federica
Tue Dec 24 2024
Max pain represents a specific price level in the market.
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Matteo
Tue Dec 24 2024
This price is determined by the number of open options contracts.
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Dreamchaser
Tue Dec 24 2024
Open interest refers to the total number of options contracts that have been traded but not yet settled.
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