AscendEX is excited to announce the launch of a new trading product - Easy Options. Easy Options is a simplified options trading product that aims to provide traders with an easy-to-understand and accessible way to invest in the price volatility of digital assets. Traders can choose from a variety of options contracts with different assets, exercise prices, and settlement periods in Easy Options. Unlike traditional options products, Easy Options provides a simple and intuitive way to understand the exercise of options, with only two possible outcomes: profit from exercising options, or no profit from unexercised options. Easy Options is user-friendly and transparent, making options trading easy for both novice and experienced traders. Try it out now!
Understanding the Easy Options market
Easy Options contracts are based on a range of crypto assets, such as Bitcoin and Ethereum, and are designed to provide traders of all levels of experience with more understandable and usable volatility trading options.
The relationship between the underlying asset price and the options price is an important part of the Easy Options market. The price of Easy Options contracts is based on the current market price of the underlying asset, the exercise price of the contract (also known as the strike price), and the remaining time to the expiry date. As the price of the underlying asset fluctuates, so does the price of the options. Traders need to know the expected trend of the underlying asset price in order to make wise trading decisions.
Types of Options
Easy Options provides a variety of contracts with different underlying assets and exercise prices to suit different trading strategies and risk preferences. Traders can choose from call or put option contracts, and different options contracts will provide different payment structures depending on whether the underlying asset price is higher or lower than the exercise price at expiration.
For call option contracts, traders who expect the price of the underlying asset to rise above the exercise price by the expiry date (expiration time is 7:59:59 AM UTC) can choose this type of contract. If the underlying asset price exceeds the exercise price at expiration, the contract will expire “profitable”, and the trader will receive a fixed income of $1 per contract.
On the other hand, put option contracts are suitable for traders who expect the underlying asset price to fall below the exercise price by the expiry date. If the underlying asset price is still lower than the exercise price at expiration, the contract will expire “profitable”, and the trader will receive a fixed income of $1 per contract.
For more details, please visit the product page.
Thank you for your continued support!
The AscendEX Team