Digital currency options trading is a cryptocurrency-based financial contract that offers traders a versatile tool for portfolio management. For beginners, OKX provides an exceptionally user-friendly platform for trading simple options. This guide will walk you through the entire process step by step.
Understanding Cryptocurrency Options
Options, like futures, are derivatives that track the price of underlying assets. However, unlike futures:
- Options give the buyer the right (but not obligation) to buy (call option) or sell (put option) the underlying asset at a specific price by/on a set date (expiration).
They serve multiple strategic purposes:
- Limiting losses in bear markets
- Profiting during high volatility
- Speculating on price movements with relatively low risk
👉 Why traders prefer OKX for options trading
Key Features of OKX Simple Options
| Feature | Description |
|---|---|
| Contract Types | Call & Put Options |
| Expiry Periods | Daily, Weekly, Monthly, Quarterly |
| Exercise Style | European (exercisable only at expiry) |
| Trading Hours | 24/7 |
| Contract Size | 0.1 BTC or 1 ETH per contract |
Special Note: OKX's simplified interface includes risk disclaimers and recommended strike prices—perfect for beginners.
Step-by-Step Trading Process
Step 1: Access the Options Module
- Navigate to Trade > Basic Trade from the OKX homepage.
- Under Markets, switch the grouping to Options.
Step 2: Select Your Asset
- Choose either BTC Simple Options or ETH Simple Options in the simplified trading mode.
Step 3: Determine Your Position
- Click the up arrow for call options (bullish) or down arrow for put options (bearish).
Step 4: Choose a Contract
OKX recommends contracts categorized by:
- Duration (e.g., "Short-term")
- Risk Level (e.g., "High-risk")
- Premium (dynamic based on spot price)
Example: A $49,000 BTC call option expiring in 48 hours with a $174 premium.
Step 5: Enter Contract Details
Specify:
- Asset/USDT denomination
- Quantity (e.g., 10 contracts = 1 BTC)
- Estimated Cost (auto-calculated)
👉 Master options trading with OKX's tools
Step 6: Monitor Positions
View open positions under Trade > Order History. Options automatically settle at expiry.
Step 7: Early Closure (Optional)
- Manual Close: Submit limit orders via the order record module.
- Market Close: Use "Close All" for immediate execution (higher fees apply).
FAQ Section
Q1: What’s the difference between simple and professional options on OKX?
A1: Simple options feature a streamlined UI with recommended strikes and disclaimers, while professional mode offers advanced tools like selling contracts.
Q2: Can I exercise options before expiry?
A2: No—OKX offers European-style options, exercisable only at expiration.
Q3: How are profits paid out?
A3: Profits are credited in USDT or the traded cryptocurrency upon settlement.
Q4: What’s the minimum contract size?
A4: 0.1 BTC or 1 ETH per contract.
Q5: Are options risk-free?
A5: No. While losses are limited to premiums paid, proper risk management is essential.
Disclaimer: Digital currency trading involves risks. This content does not constitute investment advice.