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Underlying Asset
Type
Buy or Sell
CallIt refers to the right given to the option holder to buy underlying assets, i.e., BTC or other digital assets, at a specified price. When buying a call option, buyers pay certain fees to sellers who must meet their obligations.
On the maturity date, buyers will profit if the underlying price is higher than the preset strike price. Otherwise, the option will expire automatically.
Settlement Rules:
On the maturity date, if the Settlement Index Price is higher than the Strick Price, the following formula will be applied: Settlement Amount = Order Amount * (1 - Strike Price / Settlement Index Price)
On the maturity date, if the Settlement Index Price is lower than the Strick Price, there will be no Settlement Amount.
Example:
On March 20, 2020, Mark bought the following product.
Product type: Call
Strike Price 8000
Maturity Date 2020-07-27
Amount 10 BTC
Mark paid all fees.0.2 BTC
On the maturity date on July 27, 2020,
If the Settlement Index Price is $14,000 and is higher than the Strike Price H, the following formula will be applied: Settlement Amount = 10 BTC * (12,000 - $8,000) / 14,000 = 2 BTC.
If the Settlement Index Price is $6,000 and is lower than or equal to the Strike Price, there will be no Settlement Amount.
PutIt refers to the right given to the option holder to sell underlying assets, i.e., BTC or other digital assets, at a specified price. When buying a put option, buyers pay certain fees to sellers who must meet their obligations.
On the maturity date, buyers will profit if the underlying price is lower than the preset strike price. Otherwise, the option will expire automatically.
Settlement Rules:
On the maturity date, if the Settlement Index Price is lower than the Strick Price, the following formula will be applied: Settlement Amount = Order Amount * (Strike Price / Settlement Index Price - 1)
On the maturity date, if the Settlement Index Price is higher than or equal to the Strick Price, there will be no Settlement Amount.
Example:
On March 20, 2020, Mark bought the following product.
Product type: Put
Strike Price 5000
Maturity Date 2020-07-27
Amount 10 BTC
Mark paid all fees.0.2 BTC
On the maturity date on July 27, 2020,
If the Settlement Index Price is $4,000 and is lower than the Strike Price, the Settlement Amount will be 10 BTC * (5,000 / 4,000 - 1) = 2.5 BTC.
If the Settlement Index Price is $8,000 and is higher than or equal to the Strike Price, there will be no Settlement Amount.
Call SpreadIt means while buying a call option at a low strike price, one sells another call option at a high strike price but with the same underlying asset and maturity date.
Example: If you predict some time in the future the underlying price will rise above price 1 but no higher than price 2 (price 2 > price 1), buy a call spread.
Settlement Rules:
On the maturity date,,if the Settlement Index Price is lower than or equal to the Strick Price L, there will be no Settlement Amount.
On the maturity date,,if the Strike Price L is lower than the Settlement Index Price and is lower than or equal to the Strike Price H, the following formula will be applied: Settlement Amount = Order Amount * (1 - Strike Price L / Settlement Index Price).
On the maturity date,,if the Strike Price H is lower than the Settlement Index Price, the following formula will be applied: Settlement Amount = Order Amount * (Strike Price H - Strike Price L) / Settlement Index Price.
Example:
On March 20, 2020, Mark bought the following product.
Product type: Call Spread
Strike Price L 8000
Strike Price H 12000
Maturity Date 2020-07-27
Amount 10 BTC
Mark paid a 0.1 BTC fee.
On the maturity date on July 27, 2020,
If the Settlement Index Price is $7,000 and is lower than or equal to the Strike Price L, there will be no Settlement Amount.
If the Settlement Index Price is $10,000, higher than the Strike Price L and lower than or equal to the Strike Price H, the following formula will be applied: Settlement Amount = 10 BTC * (1 - 8,000 / 10,000) = 2 BTC.
If the Settlement Index Price is $14,000 and is higher than the Strike Price H, the following formula will be applied: Settlement Amount = 10 BTC * (12,000 - $8,000) / 14,000 = 2.85714285 BTC.
Put SpreadIt means while buying a put option at a high strike price, one sells another put option at a low strike price but with the same underlying asset and maturity date.
Example: If you predict some time in the future the underlying price will drop below price 2 but no lower than price 1 (price 2 > price 1), buy a put spread.
Settlement Rules:
On the maturity date,,if the Settlement Index Price is lower than the Strick Price L, the following formula will be applied: Settlement Amount = Order Amount * (Strike Price H - Strike Price L) / Settlement Index Price.
On the maturity date,,if the Strick Price L is lower than or equal to the Settlement Index Price and is lower than the Strike Price H, the following formula will be applied: Settlement Amount = Order Amount * (Strike Price H / Settlement Index Price - 1).
On the maturity date,,if the Strike Price H is lower than or equal to the Settlement Index Price, there will be no Settlement Amount.
Example:
On March 20, 2020, Mark bought the following product.
Product type: Put Spread
Strike Price L 4000
Strike Price H 6000
Maturity Date 2020-07-27
Amount 10 BTC
Mark paid a 0.1 BTC fee.
On the maturity date on July 27, 2020,
If the Settlement Index Price is $8,000 and is higher than or equal to the Strike Price H, there will be no Settlement Amount.
If the Settlement Index Price is $5,000, higher than or equal to the Strike Price L and lower than the Strike Price H, the following formula will be applied: Settlement Amount = 10 BTC * (6,000 / 5,000 - 1) = 2 BTC.
If the Settlement Index Price is $3,000 and is lower than the Strike Price L, the following formula will be applied: Settlement Amount = 10 BTC * (6,000 - 4,000) / 3,000) = 6.66666666 BTC.
Note:
1. This product is not principal-protected. You must complete the Investor Test if you are a first-time buyer. This will help you understand the relevant profits and risks fully. If necessary, please consult competent professionals before making investment decisions.
2. Please complete KYC before making a purchase.
3. Calculation data and quotes are for reference only and should not be considered as investment advice or a recommendation of any particular investment product. The final price of the order is subject to change.
4. You will be banned from accessing or using our service if: you are located in the "Restricted Jurisdictions" listed below; you are a citizen or resident of the "Restricted Jurisdictions" listed below; your company was registered/founded in the "Restricted Jurisdictions" listed below. "Restricted Jurisdictions" include but are not limited to the US (including all US territory, such as Puerto Rico, American Samoa, Guam, Northern Mariana Islands, US Virgin Islands, i.e., St. Croix Island, St. John Island, and St. Thomas Island), Japan, Hong Kong, Turkey, Israel, the UK, Cuba, Iran, the Democratic People's Republic of Korea, Crimea, Sudan, Syria, Iraq, Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Sevastopol, etc.
The main difference between Exchange Traded Options and Vanilla Options is whether the option contracts are standardized. Vanilla Options are non-standardized option contracts, and the exercise price and expiration date can be flexibly customized.
A spread is constructed by buying and selling an equal number of options of the same class but with different strike prices. Currently, we support Call Spreads and Put Spreads with the same expiration dates.
The minimum purchase limit is 5 shares. There is no maximum purchase limit.
It is irrevocable after the purchase is successful. Early redemption is also not supported.
It is the average of the BTC index from 15:30 to 16:00 (UTC+8) on the expiry date of the product. The BTC index combines the BTC-USD prices of 7 major BTC-USD exchanges (Bitstamp, Bittrex, Coinbase Pro, Gemini, Kraken, Itbit and LMAX Digital) around the world.
The settlement will be completed within 48 hours after 16:00 on the expiration date, you will receive settlement amount or no settlement as described in the Settlement Rules.