Introduction to Digital Currency Options
Options represent contractual rights that can be exercised at a future date. When purchasing options:
- Profitable Scenario: Buyers exercise rights to gain income, while sellers fulfill corresponding obligations.
- Unfavorable Scenario: Buyers may choose not to exercise, with no obligations imposed on sellers.
Key Advantages Over Futures Contracts
✅ High Leverage with Zero Liquidation Risk
✅ Limited loss potential (only the premium paid)
✅ Uncapped profit potential ("asymmetric returns")
✅ Popular hedging tool for digital asset portfolios
Investors utilize options to:
- Hedge against price volatility
- Generate additional income through writing options
- Gain leveraged exposure to price movements
Types of Digital Currency Options
OKX offers BTC/USDT and ETH/USDT options across three trading formats:
| Product | Features | Trading Roles |
|------------------|-------------------------------------------|---------------------|
| Options Lite | Simplified interface | Buyer-only |
| Options Pro | T-quote layout, diverse contract types | Buyer & Seller |
| RFQ Trading | Liquidity market access, multi-leg orders | Large-volume trades |
Example Contract Notation: BTCUSD-20220520-30000-C
- Underlying: BTCUSD
- Expiry: May 20, 2022 (16:00 HKT)
- Strike: $30,000
- Type: Call (P = Put)
Expiry Date Structure
OKX categorizes options by expiry duration:
- Daily Options
- Weekly Options
- Monthly Options
- Quarterly Options
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Critical Expiry Rules
- European-style exercise (only at expiry)
- Auto-exercise for profitable contracts at 16:00 HKT
- Positions may be closed pre-expiry
- Market volatility may affect order execution
FAQ Section
Q: What's the maximum loss when buying options?
A: Limited to the premium paid – no margin calls or liquidation risks.
Q: Can I sell options without owning the underlying asset?
A: Yes, through cash-settled contracts (subject to margin requirements).
Q: How does options leverage compare to futures?
A: Options provide synthetic leverage through premium pricing, typically offering higher effective leverage than futures.
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Risk Disclosure
Digital assets involve high volatility and may lose value. This content:
- Does not constitute financial advice
- May include AI-assisted components
- Is © 2025 OKX (full reproduction permitted with attribution)
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