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How to Trade Options
Updated over a month ago

Options Trading

This is what the options trading interface looks like:

the BIT supports BTC, ETH, XRP, FIL, TON, BCH, SOL and NEAR as underlying assets of its option contracts. There are a few basics that you need to know about options trading:

  • Expiration Date

All the option contracts that are listed on the exchange are European-style. This means that they have a specified expiry date, and the exercise of the option can only happen at expiry. There are daily, weekly, and quarterly option contracts on the exchange. Users can also check the appropriate price in the order book or place a desired price to sell the option before expiration.

  • Strike Price

This is often times referred to as the exercise price – it’s the predetermined price of the asset at which it may be bought or sold according to the option contract.

  • Option Premium

This is the price that the option buyer pays for buying the contract. In turn, the option seller earns the option premium as a reward for their obligation. There are multiple factors that determine the premium.

BIT uses a tiered approach based on the trading volume of the user. you may refer here for the trading fee.

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