Crypto options trading is more advanced than other types of trades, like spot trading. So, it's important to start with the basics.
Options is one of many trading vehicles available to grow your crypto portfolio. How's options trading different from other tactics, like spot and futures?
Put options allow you to sell a crypto asset at a predetermined strike price. They're often used for hedging, and to make gains from price drops.
A call option allows you to buy an underlying crypto asset at a set strike price. They're often traded when markets are bullish.
The implied volatility metric measures the expected fluctuation of an asset's price over a specific time period. Understanding and applying it can increase your chances of success.
The concepts of In-The-Money and Out-Of-The-Money represent the levels of risk and reward in a crypto market. Understanding both could give you an edge.
To put your crypto options trading knowledge to use, there’s a number of actionable things you need to get right. Let's break them down in simple terms.
Choosing the right options trading platform can impact the success of your trading strategy. Our guide is here to help you.
Option Greeks give clues about how an option's price might react to changing market conditions. They're used by traders to manage volatility.
Many traders use options to hedge their positions. What is hedging and how do you use it? Read on to understand this risk management essential.
An option's expiration date can majorly impact the success of your position. Find out how expiration dates affect option premiums and influence your strategy.
Understanding strike price and 'moneyness' are key in predicting the potential gains from your options contract. Learn more about both concepts and how they're related.
Choosing the right margin mode can help reduce your margin requirements while maximizing the efficiency of your funds.
Options margin is the minimum collateral you must submit to confirm you have enough funds to exercise an options contract.
So you want to trade crypto options on OKX? Here's everything you need to know.
All the essential information you need before you start trading options with OKX. Explore trading fees, capital requirements, and account modes.
Our Liquid Marketplace tackles a common challenge options traders encounter — low liquidity. Explore the benefits today.
Familiarize yourself with our OKX options trading frequently asked questions and give yourself the best chance of success.
Once you get into the crypto options trading game, there are many strategies you can apply. Let's look at some of them.
Cash secured puts allow you to sell put options for a better entry price. It's a good starting point if you're new to options trading.
Arbitrage is a tactic for exploiting the price differences across exchanges. Put call parity arbitrage applies this approach to mispricing between call and put options.
The straddle option strategy is designed to manage the unpredictability of crypto markets and secure gains no matter the price direction.
Strangle option is a close cousin of the straddle option strategy. The difference? With strangles, the strike prices of calls and puts differ. With straddles, they're the same.
Options trading can be a rollercoaster, but it doesn't need to be. The options wheel strategy allows you to take a more passive approach.
Using this strategy, you can lock in gains as prices change across two options contracts with different expiry dates.
This crypto hedging tactic helps you reduce the risk of liquidation and manage market volatility. It's another hedging tactic to know about.
Crypto covered calls involve owning a crypto asset and selling a call option against the same asset. The tactic provides downside insurance while you hold your preferred crypto.
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