Options (11)

Like in traditional finance, options are derivatives contracts based on another asset. What makes them different from other investment vehicles is how people trade them. An investor or trader gets the right to buy/sell assets at a pre-determined price and date. This allows them to take advantage of the

The recent bullish market saw open positions in futures as well as in Bitcoin and Ether options hit record highs. By the morning of July 30 UTC, the open interest of Bitcoin options on OKX had reached an all-time high of $93 million — just three days earlier, the one-day trading volume had also set an

In the last episode, we talked about how to calculate PnL when you close your positions before expiry. In this episode, we will move on to calculate PnL of options on expiry.First, we need to understand what is exercising options. If a user buys a call option or a put option and holds it until expiry,

Firstly, let me introduce the three elements of OKX options:Exercise price: the buyer and seller agree to buy and sell the BTC/USD index at the agreed price on expiration date.Options naming rule: Named in order of “underlying asset – expiration date – exercise price – contract type”.

Options and futures are both derivatives. What is the difference between them?First, rights vs. obligationsWhen trading futures, both the buyer and the seller have to settle the futures contract upon expiry.With options, the buyer has the right, but not the obligation, to or not to buy or sell the underlying

Facing with unseen overall market drawdowns and historical-high volatility, not only in crypto but also on equity and commodity markets, even industry experienced professionals passed through unwilling displacement. Market’s uncertainty about COVID19 and its consequences, unending oil hegemony game,

This series covers an option greek, Delta, and related trading ideas.I. DeltaWe are now entering the option’s greek, which is “partial derivative of options price with respect to each price factors (underlying price, volatility, time to expiration, risk-free interest rate)”. And in this article, we will

First open the OKX mobile app, and select “Contract” in the bottom menu bar. Enter “Contract” and select “Options Contract” at the top.If you are a new user, you must complete the quizzes before you’re able to open an options account.Here we will take the operation

Open OKX official website at www.okex.com, and select at the top menu bar “Trade” then “Options”.You will enter the options trading page. Before you start your first options trade you need to open an account. To open an account, click “Activate Options Account” located