Understanding Options Contracts
Options contracts grant the buyer the right—but not the obligation—to buy (call option) or sell (put option) an underlying asset at a predetermined price (strike price) by a specified expiration date.
👉 Master options trading strategies with our expert-curated guide.
Key Mechanics
- Buyer's Perspective: Profits when exercising the option is favorable at expiration; no obligation to exercise if unfavorable.
- Seller's Perspective: Obligated to fulfill the contract if exercised; retains the premium as income if unexercised.
OKX Options Products
OKX offers BTC and ETH options contracts, catering to both beginners and advanced traders:
| Product | Target Audience | Features |
|---|---|---|
| Simplified Options | Entry-level investors | User-friendly interface, basic strategies |
| Professional Trading | Experienced traders | Advanced tools, complex order types |
Supported Assets
Why Trade Options?
- Leverage: Control large positions with relatively small capital.
- Hedging: Protect your portfolio against adverse price movements.
- Income Generation: Earn premiums by selling options.
👉 Learn how to hedge with options in volatile markets.
FAQs About Options Contracts
Q: What happens if I don’t exercise my option?
A: The contract expires worthless, and you lose only the premium paid.
Q: Can I trade options outside OKX’s supported assets?
A: Currently, only BTC and ETH options are available. Check our website for updates.
Q: How is the strike price determined?
A: Strike prices are set based on current market conditions and liquidity.
Advanced Concepts
Mark Price vs. Index Price
- Mark Price: Used to calculate unrealized P&L; incorporates spot index price + moving average of basis.
- Index Price: Derived from major spot markets to prevent manipulation.
Trading Tips
- Avoid overexposure by diversifying strategies.
- Monitor implied volatility to assess option pricing.
Additional Resources
- Locked Mining: Stake assets to earn POS rewards.
- Spot Trading: Trade BTC, ETH, and other pairs directly.
👉 Explore crypto spot markets with low fees.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Digital assets carry risks; please assess your risk tolerance before trading. © 2025 OKX. All rights reserved.
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