About Huobi Derivatives Warrant

Huobi Derivatives Warrant offers a variety of option products such as American standalone options, European option spreads, options with customized exercise prices, and OTC options.

 

Options enable the buyer to buy or sell a certain amount of underlying assets at a certain time in the future, and the buyer needs to pay a certain amount of option fees (premium) to the seller.

 

Huobi Derivatives Warrant’s function settings differ between Huobi Global’s mobile app version and website version, and have been adapted to different users’ trading habits. The mobile app version offers American options with the strike price as the underlying price upon purchase, and users only need to select the duration and option type. The website version provides American standalone options and European option spreads. The former allows users to customize the exercise price, featuring flexible operations higher liquidity, and unlimited profit potential. European option spreads are the first option product to allow users to customize a price range, and supports liquidation within an agreed-upon time period. Users can implement different option strategies by setting high/low exercise prices and expiration times and choosing the option types. Thanks to high and low exercise price ranges, the profits are more predictable, and the premium is also lower than that of American options.

 

With a diversified product portfolio, Huobi Derivatives Warrant satisfies users’ various needs such as exercising warrants at any time before the expiration date, multiple time ranges, high liquidity, and high autonomy. In addition to the general features of high yield, low loss and no liquidation, Huobi Derivatives Warrant products also support customization services such as option spreads and customized price ranges.

 

Options can generate profits in two ways: the first is that the trader actively exercises/closes the option at any time before the expiration date, and the second is automatic exercising of the option on the expiration date. The trader's biggest loss is the option premium, but the profit potential is unlimited.

 

Option products

Derivatives Warrant

BTC/USDT

ETH/USDT

DOGE/USDT

Product Name

European option spread/American option

European option spread/American option

European option spread/American option

Product Type

Put/Call

Put/Call

Put/Call

Hourly single account subscription denomination

0.001-20

0.01-200

100-300,000

Maximum purchase denomination under current single account

50

500

1,000,000

Settlement price

Huobi BTC/USDT Contract Index Price

Huobi ETH/USDT Contract Index Price

Huobi DOGE/USDT Contract Index Price

Delivery method

Difference Settlement

Difference Settlement

Difference Settlement

Direction

Buy

Buy

Buy

Underlying assets

BTC/USDT

ETH/USDT

DOGE/USDT

 

Option premium

Option premium refers to the cost paid by the option buyer to the seller in order to obtain the right to buy or sell a certain financial asset or commodity specified by the option contract. When the user places an order, the system will calculate the option cost based on order details, and will deduct the cost when the order is confirmed. The option premium is a fixed fee, and the net profit equals the return minus the premium.

 

Settlement price

At expiration, all option contracts are settled based on the Huobi Contract Index price. Users need to pay attention to the market situation at all times. In cases of extreme market conditions, users can settle their contracts by using the exercise/liquidate function to avoid risks.

 

Risk alert

Huobi Derivatives Warrant is a type of derivative, and users need to bear the investment risks that may exist when accessing and using Huobi Derivatives Warrant products. Please carefully evaluate whether Huobi Warrant’s products match your investment objectives, risk tolerance, investment experience, financial situation and investment needs. Please make rational investments based on your personal financial situation.

 

Breakeven price

Call options: breakeven price = (exercise price + option premium / order quantity). Assuming that you bought a call option of 0.1 BTC at the price of US$45,000 dollars (with the option premium of $50 dollars), the breakeven price = 45000 + 50/0.1 = 45500. Only when the BTC contract index rises above $45,500 does the actual difference become the user's final net profit.

 

Put options: breakeven price = (exercise price - option premium/order quantity). Assuming that you bought a put option of 0.1 BTC at the price of US$45,000 dollars (with the option premium of $50 dollars), the breakeven price = 45000 - 50/0.1 = 44500. Only when the BTC contract index falls below $44,500 does the actual difference become the user's final net profit.

 

 

Find us on

E-Mall: [email protected]

Twitter:https://twitter.com/Huobi_D_Warrant

Telegram:https://t.me/Huobi_D_Warrant

 

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Huobi Global reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi Global makes no recommendations or guarantees in respect of any digital asset, product, or promotion on Huobi Global. Prices of digital assets are highly volatile and trading digital assets is risky. Please read our Risk Reminder texthere.