Options (App/Web version)
An option is a right that can be exercised at a certain time in the future. After purchasing an option, if exercising the right on the expiration date is beneficial to the buyer, the buyer will receive the corresponding revenue through exercising, and the seller needs to cooperate with the buyer's exercise and make the corresponding payout. If exercising the option at expiration is unfavorable to the buyer, the buyer may choose not to exercise the option, and the seller has no obligation to make any payout.
OKX offers options with Bitcoin (BTC) and Ethereum (ETH) as underlying assets, allowing users to buy and sell call options and put options. Simple Options is only available on the app and is not currently supported on the web.
The options trading process consists of three steps: Asset transfer, Account information setup, Call/put options operations.
App
1. Asset transfer
Before trading options , you need to transfer funds and move the cryptocurrency you want to use for options into your trading account. You can transfer funds on pages such as Assets and Trade. We'll use the Assets page as an example. USDT can only be used for Simple Options, and cannot be used for Advanced Options.
Open the OKX app, select the Assets > Transfer. Select the currency (using USDT as an example ), choose from Funding Account to Trading Account, enter the transfer quantity - tap Confirm.
2. Account Mode Settings
Click the three dots icon in the upper right corner of the transaction page > Trading Mode > Account Mode.
Change Account Mode to Futures mode or Advanced Mode. Select the appropriate Trading Unit, Settlement Unit to complete the setup. For options, the available trading units are: contract or coins.
3. Call Option
When you anticipate that the Markets will rise in the future, you can choose a call option.
1. Buy to open a long position
Experienced professional users can choose the Advanced Options, which offers a wider variety of option types.
Take BTC options as an example: Open the APP and go to the Trade page, click the left upper corner BTC/USDT trading pair; on the new page, click to switch trading mode - Options - select Professional Mode, underlying asset BTC - All Options > click Call, select the exercise date > scroll down to choose options at different strike prices.
Select Cross/Isolated Margin -Limit Order - Enter Price, Quantity - Click Buy.
Regular users can directly select different expiration dates and types of option for trading in the list navigation bar, making it more convenient.
Users with zero experience can choose Simple Options, which is easier and smarter.
Select BTC Simple Options - choose the exercise date - click the Call button - use the dropdown to select different strike price options types.
View the profit and loss and other related data of the selected options, then click Confirm - enter Purchase Quantity - OK.
Important notes:
Explanation of option types: BTCUSD (underlying asset) – 20210625 (expiration date, at 16:00 HKT on that day) - 30000 (strike price) - C (C stands for call, P stands for put).
OKX options offers 8 expiration date to choose from: same day, next day, current week, bi-weekly, monthly, bi-monthly, quarterly, and next quarter.
2. Sell to close position
OKX options can be close in two places: the transaction page and the specific position page. We'll use the specific position page as an example for closing a position.
Click Position - select the specific position you want to close, click close, then enter Price, Quantity > select close.
Important notes:
OKX options are European-style options. Both buyers and sellers can only exercise or be exercised at 4:00 PM (HKT) on the options expiration date, but they can close their positions early before expiration.
When an options expires, at 16:00 (HKT) on the same day, profitable options will be automatically exercised, while losing options will automatically expire and will not be exercised.
If there is significant market volatility, your order may not be filled.
If you need to quickly close all positions, you can select specific positions and click Market Close All.
3. Order Inquiry
On the main position opening page, click Orders at the bottom > select the order type to view your current pending orders. You can also click Cancel Order to revoke a pending order.
4. Position Overview
After an order is filled, users can view their position-related data in the Positions list: average entry price, position size, initial margin value, and PnL, etc.
4. Put Option
When you anticipate that the Markets will fall in the future, you can choose a put option.
1. Sell to open position
Take BTC options as an example: Open the APP and go to the Trade page > click the trading pair in the upper left corner BTC/USDT; on the new page, click to switch trading mode > Options > select Professional Mode, underlying asset BTC - All Options.
Click Put - select the expiration date - use the dropdown to choose different option types at various strike prices; select Cross/Isolated > Limit Order > enter Price, Quantity > click Sell.
Note: When selling to open a put option, users can also choose Simple Options or directly click the navigation list below to select options of different dates and types for trading.
2. Buy to close
Click Position - select the specific position you want to close, click close > enter Price, Quantity > click close.
Web
1. Asset transfer
Before trading options, you need to transfer funds and move the cryptocurrency you want to use for options into your trading account. You can transfer funds on pages such as Assets and Trade. We'll use the trading page as an example.
Open the OKX official website, click the top right Assets > Transfer.
Select the currency, using BTC as an example, select Funding Account to Trading Account, enter the transfer Amount > Confirm.
2. Account Mode Settings
Click the settings icon in the upper right corner of the trading page - select options such as Account Mode to configure your settings.
3. Call Option
When you anticipate that the Markets will rise in the future, you can choose a call option.
1. Buy to open a long position
Experienced professional users can choose the Advanced Options, which offers a wider variety of option types.
Select the Call Option > Choose the exercise date > Use the dropdown to select option at different strike prices.
Select Cross/Isolated Margin - Limit Order - Enter Price, Quantity - Click Buy.
Regular users can directly select different expiration dates and types of option for trading in the list navigation bar, making it more convenient.
Important notes:
Explanation of option types: BTCUSD (underlying asset) – 20210625 (expiration date, at 16:00 HKT on that day) – 30000 (strike price) – C (C stands for call, P stands for put).
OKX options offers 8 expiration date to choose from: same day, next day, current week, bi-weekly, monthly, bi-monthly, quarterly, and next quarter.
2. Close by selling
OKX options can be close in two places: the transaction page and the specific position page. Here, we'll use the specific position page as an example for closing a position.
Click Position - select the specific position to close - enter Price, Quantity - click close.
Important notes:
OKX options are European-style options. Both buyers and sellers can only exercise or be exercised at 4:00 PM (HKT) on the expiration date, but they can close their positions early before expiration.
When an options expires, at 16:00 (HKT) on the same day, profitable options will be automatically exercised, while losing options will automatically expire and will not be exercised.
If there is significant market volatility, your order may not be filled.
If you need to quickly close all positions, you can select specific positions and click Market Close All.
3. Order Inquiry
On the main position opening page, click Maker Orders at the bottom-select the order type to view your current pending orders. You can also click Cancel Order to revoke a pending order.
4. Position Overview
After an order is filled, users can view their position-related data in the Positions list: average entry price, position size, initial margin requirement, and return rate, etc.
4. Put Option
When you anticipate that the Markets will fall in the future, you can choose a put option.
1. Sell to open position
Select the Put Option on the right - choose the expiration date - use the dropdown to select different option at various strike prices; select Cross/Isolated - Limit Order - enter Price and Quantity - click Sell.
Note: When opening a sell position for a put option, users can also choose Simple Options or directly click the navigation list below to select options of different dates and types for trading.
2. Buy to close
Click Position - select the specific position to close - enter Price, Quantity - click close.