Options trading on OKX (formerly OKEx) offers investors strategic opportunities to hedge risks or speculate on cryptocurrency price movements. This guide walks you through the process, key features, and differences between options and futures contracts.
How to Start Trading Options on OKX
Enable Options Trading
- First-time users must complete a quiz by clicking "Enable Options Contract Trading" to activate their account.
- Navigate to the trading page and select either "Call" (buy) or "Put" (sell) options based on your market outlook.
Place an Order
- Choose a contract with your preferred strike price from the options table.
- Enter the price and quantity, then click "Buy" or "Sell" to execute the trade.
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Key Features of OKX Options
| Feature | Description |
|----------------------|-----------------------------------------------------------------------------|
| Settlement Asset | BTC, ETH, or other cryptocurrencies. Example: BTCUSD contracts represent 0.1 BTC. |
| Contract Types | Call (bet on price rise) or Put (bet on price drop). |
| Expiration | Fixed expiry dates (e.g., BTCUSD-190927-6000-C expires on September 27, 2019). |
| Payout | Call option holders profit if the asset price exceeds the strike price at expiry. |
Options vs. Futures: Key Differences
| Aspect | Options | Futures |
|---------------------|---------------------------------------------|--------------------------------------|
| Obligation | Buyer has rights; seller has obligations. | Both parties must fulfill the contract. |
| Risk/Reward | Limited loss (premium paid). | Unlimited risk for both sides. |
| Flexibility | Can be exercised or sold before expiry. | Must be held until delivery date. |
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FAQs
1. How do I calculate profits from a call option?
- Profit = [(Settlement Price − Strike Price) / Settlement Price] × Contract Multiplier.
- Example: If BTC settles at $7000, a $6000-strike call yields [(7000−6000)/7000] × 0.1 BTC.
2. What happens if my option expires out-of-the-money?
- The contract becomes worthless, and you lose only the premium paid.
3. Can I trade options without owning the underlying asset?
- Yes. OKX options are cash-settled in BTC or other supported cryptocurrencies.
4. Are options riskier than futures?
- Options limit losses to the premium, while futures carry higher margin risks.
5. How does OKX ensure fair pricing?
- Prices are derived from the BTC/USD index, with transparent settlement mechanisms.
6. Can I sell options before expiry?
- Yes. Traders can close positions early to lock in gains or cut losses.
By mastering OKX options, you gain access to versatile strategies like hedging or leveraged speculation. Start with small positions to familiarize yourself with the mechanics, and gradually scale your approach.
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