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Where to Trade Crypto Options 2022

Like traditional options, crypto options unlock advanced trading strategies and greatly increase the ways you can potentially earn with crypto trading. At their core, crypto options are “derivatives” of cryptocurrency assets — meaning they derive their value from the underlying cryptocurrency.

Options are an agreement to either buy or sell a cryptocurrency, such as BTC or ETH, at some point in the future for a certain price. Each option has a price, known as a “premium,” that is normally a fraction of the price of the underlying asset.

Options can either be bought or sold, depending on what side of the trade you want to take. The buyer of the option has to pay the seller a premium for their purchase and gets to choose whether or not they want to exercise the option, while the seller is required to accommodate the buyer if they choose to exercise the option.

How Does Crypto Option Trading Work?

Crypto options are either “calls” or “puts.” Each option has an expiration date and price that the underlying asset can be traded at on the expiration date.

Buying a “call” option gives you the opportunity to buy a crypto like Bitcoin at a certain date in the future for an agreed-upon price. The date in the future is known as the “expiration date,” and the agreed-upon price is known as the “strike price.”

When the expiration date arrives, if the strike price of the call option is lower than what Bitcoin is trading for, you can exercise the option and make money by turning around and immediately selling Bitcoin for a profit.

Buying “put” options works the opposite way — they give you the opportunity to sell an asset like Bitcoin at a given price. If you have a put option and when the expiration date comes, Bitcoin is trading at less than the put option’s strike price, you can make money by purchasing Bitcoin on the open market for a lower price and selling it through your put option for a higher price.

Buying a call or put options contract gives you the right to buy or sell an underlying asset. For most option trades, however, underlying assets such as BTC or ETH rarely change hands. Since the value of the option contract itself is equal to the difference between the strike price and the market price of the underlying asset (such as BTC), most traders will just sell their option position to collect their upside. For example, if you buy a BTC call option for $1,000 (the option premium) with a strike price of $20,000 and BTC is trading for $25,000 at the expiration date, your call option will have a price (value) of $5,000. You can then sell the call option itself and net a profit of $4,000. This makes trading the options themselves the preferred method due to cost efficiencies when compared with trading the underlying asset.

Each call or put option can either be bought or sold. The above examples are the benefits you receive when buying a call or put option. When selling a call or put, you will receive an option premium from the buyer, which is your immediate upside, but you are obligated to follow through on your option contract. This means you must allow the option buyer to buy the asset from you if it’s a call option or purchase the asset from them yourself if it’s a put option.

It’s important to note that crypto options are different from crypto futures. Buying an option gives you the right but not the obligation to buy or sell the underlying asset, while futures require you to buy or sell the asset once you engage in the contract.

Expert Tip: Both futures and options can be used to speculate or hedge crypto, but options provide traders with more flexibility for structuring unique trade setups. -Ryan Grace, Head of Digital Assets at tastytrade.com.

Top Exchanges For Trading Crypto Options

*Note: Only European-type options trading is currently available on the following exchanges, and, for US residents, options trading through these exchanges is available only to certain individuals or not at all.

Assets Supported Fees Minimum Order Size
Deribit BTC, ETH, SOL Maker Fees: Starting at 0.03% of the underlying asset value Taker Fees: Starting at 0.03% of the underlying asset value BTC options: 0.1 BTC ETH options: 1 ETH
Binance ETH Transaction fee: 0.02% of the underlying asset price, capped at 10% of the option’s value Exercise fee: 0.015% of the underlying asset price, capped at 10% of the option’s value 0.01 ETH
Bit.com BTC, ETH, BCH Maker Fees: Starting at 0.02% of the underlying asset value Taker Fees: Starting at 0.05% of the underlying asset value Delivery Fees: 0.015% for all options except those with daily expiration dates 0.01 BTC for USD-margined options 0.1 BTC, 1 ETH or 1 BCH for Coin-margined options
OKX BTC, ETH, SOL Maker fees: Starting at 0.02% of the underlying asset value Taker fees: Starting at 0.03% of the underlying asset value Options exercise fee: 0.02% (daily options excluded) BTC options: 0.01 BTC ETH options: 0.1 ETH SOL options: 1 SOL

Deribit

Assets Supported Fees Minimum Order Size
Deribit BTC, ETH, SOL Maker Fees: Starting at 0.03% of the underlying asset value Taker Fees: Starting at 0.03% of the underlying asset value BTC options: 0.1 BTC, ETH options: 1 ETH

Deribit is the largest Bitcoin derivatives exchange currently out there. It’s a top pick for advanced traders with deep liquidity across its markets and a host of advanced trading tools.

Pros

    Cons
      Trading Crypto Options on Deribit

      Deribit supports options trading for BTC, ETH, and SOL assets. Each option contract has a predetermined date and strike price that can be picked out of a basket of available options on the platform.

      Option contracts are settled in the cryptocurrency of the underlying asset and are exercised automatically at the expiration date.

      Fees

      Deribit uses a maker/taker fee structure where traders who add liquidity to the order book (known as makers) pay smaller fees than those who take liquidity with their trades (takers). Below is a breakdown of the platform’s fees for option trades.

      Maker Fees Taker Fees
      BTC Options 0.03% of the underlying asset price or 0.0003 BTC per options contract 0.03% of the underlying asset price or 0.0003 BTC per options contract
      ETH Options 0.03% of the underlying asset price or 0.0003 ETH per options contract 0.03% of the underlying asset price or 0.0003 ETH per options contract
      SOL Options Zero maker fees 0.03% of the underlying asset price or 0.0003 SOL per options contract

      Note: Option fees are limited to 12.5%.

      Types of Options Available

      Call and put options are available for:

      Strike Prices

      Deribit provides a predetermined set of strike prices for different assets. For Bitcoin, strike prices are either in increments of $1,000 or $250. For Ethereum, increments are in $25 or $50, and for SOL, strike prices are either in $1 or $2 increments.

      Expiration Times

      Deribit provides a range of predetermined expiration dates for its crypto options. These include daily, weekly, monthly, quarterly, and even yearly option contract lengths.

      Max Leverage

      Up to 100x for Bitcoin.

      How Does Settlement Work?

      Deribit options are all settled in the cryptocurrency of the underlying asset (settled in BTC for Bitcoin options, ETH for Ethereum options, and so on).

      Options are exercised automatically if they are profitable, with the buyer’s account credited and the seller’s account debited for the transaction.

      Read our full Deribit review.

      How to Use Deribit For Trading Crypto Options

      Step 1: Go to https://www.deribit.com/ and log in or create an account.

      Step 2: Select Options from the top menu.

      Step 3: Pick the option chain (expiry date for the option).

      Step 4: You’ll be redirected to a table displaying many different options for the date you choose. You’ll see both a Bid and Ask column for each option.

      Step 5: Click anywhere in the row to the right of the strike price to bring up the order form. Fill in the order form and hit the Buy button at the bottom left.

      Step 6: A confirmation dialog will pop up. Click Create a buy order to complete the order.

      Binance

      Assets Supported Fees Minimum Order Size
      Binance ETH Transaction fee: 0.02% of the underlying asset price, capped at 10% of the option’s value Exercise fee: 0.015% of the underlying asset price, capped at 10% of the option’s value 0.01 ETH

      Binance is the largest crypto trading exchange in the world. As such, it has a stellar options trading interface that allows traders to trade ETH as an ETH/USDT option pair. While the platform has deep liquidity and an intuitive interface, advanced traders may feel restricted by its support for just one options asset.

      Pros

        Cons
          Trading Crypto Options on Binance

          Binance allows traders to pick out options from a list with predetermined strike prices and expiration dates in set increments. The platform currently only supports ETH options, and any profits from option trading are settled in USDT at expiry.

          Fees

          Binance options come with two fees:

            The transaction fee is paid whenever the option is purchased, while the exercise fee is paid only if the option is actually exercised (used).

            Types of Options Available

            Call and put options on ETH, settled in USDT.

            Strike Prices

            Binance offers options with a variety of strike prices that are available in increments of $50-$100 for its ETH options contracts.

            Expiration Times

            Options on Binance are settled daily, weekly, monthly, or quarterly.

              Max Leverage

              Up to 100x.

              How Does Settlement Work?

              Binance options are always settled in USDT.

              How to Use Binance For Trading Crypto Options

              Step 1: Go to Binance.com. Click Log In, or Register in the top-right corner if you don’t have an account.

              Step 2: When logged in, select Derivatives > Options from the top menu.

              Step 3: Checklist the terms and agreements and click Open Options Account.

              Step 4: Add funds to your account by clicking Transfer.

              Step 5: Select the underlying asset for the options you want to trade and select Call or Put option to open a position.

              Step 6: Choose your order type, enter the Price and Amount for the option and click Buy. Congrats! You have bought an option.

              Assets Supported Fees Minimum Order Size
              Bit.com BTC, ETH, BCH Maker Fees: Starting at 0.02% of the underlying asset value Taker Fees: Starting at 0.05% of the underlying asset value Delivery Fees: 0.015% for all options except those with daily expiration dates 0.01 BTC for USD-margined options 0.1 BTC, 1 ETH or 1 BCH for Coin-margined options

              Read our full Binance review.

              Bit.com

              Bit.com is a cryptocurrency exchange that primarily focuses on trading options and futures. The exchange features low fees, several supported options assets, and a variety of strike prices and expiration dates for their options.

              Pros

                Cons
                  Trading Crypto Options on Bit.com

                  Bit.com separates its options trades into USD-M markets (settled in USD) and Coin-M markets (settled in the underlying coin). Between these two categories, the platform supports options for BTC, ETH, and BCH assets.

                  The fees for the platform are low and can be even lower depending on trade volume. At expiry, options which are profitable will be executed automatically and the profit credited to your account.

                  The platform also offers 10x leverage to options traders who want to increase the size of their positions using margin.

                  Fees

                  Bit.com charges maker/taker fees depending on whether a trade is adding liquidity to an exchange (subject to maker fees) or taking liquidity away (subject to taker fees).

                  The platform has a tiered structure for fees that depends on 30-day trading volume:

                  The platform also charges a delivery fee of 0.015% for all options except daily options.

                  Note: Option fees are capped at 12.5% of the option value.

                  Types of Options Available

                  The options on the Bit.com platform are separated into coin-margined and USD-margined options. USD-margined options are settled in USD, while coin-margined options are settled in the coin of the underlying option asset.

                  The supported assets for each category are below.

                  Coin-Margined:

                  USD-Margined:

                  Strike Prices

                  The Bit.com platform lists a set of predetermined strike prices and expiration dates that users can pick from. For BTC options, the strike prices are in increments of $1,000, while for ETH options, the strike prices are in $50 increments.

                  Expiration Times

                  Traders can choose from the following expiration dates:

                    Once an option expires, if it’s “in the money” (profitable), the platform will exercise it automatically and credit the option buyer with the realized option value.

                    Max Leverage

                    Up to 50x.

                    How Does Settlement Work?

                    Traders can choose between settlements in USD, which are available only for BTC trades, or settlements in the underlying coin, which are available for BTC, ETH, and BCH options.

                    How to Use Bit.com For Trading Crypto Options

                    Step 1: Go to https://www.bit.com/ and Log In or Sign Up.

                    Step 2: When logged in. Click on an entry in the Call or Put table to open the trading menu.

                    Step 3: Select the size of the option you want to trade and its underlying asset. Click Buy or Sell to proceed.

                    Step 4: Verify the details and click confirm to complete the trade.

                    OKX

                    Assets Supported Fees Minimum Order Size
                    OKX BTC, ETH, SOL Maker fees: Starting at 0.02% of the underlying asset value Taker fees: Starting at 0.03% of the underlying asset value Options exercise fee: 0.02% (daily options excluded) BTC options: 0.01 BTC ETH options: 0.1 ETH SOL options: 1 SOL

                    OKX is a Hong Kong-based exchange that touts its low trading fees, a wide range of supported assets, and an extensive list of spot and derivatives trading tools.

                    Pros

                      Cons
                        Trading Crypto Options on OKX

                        OKX supports options trading for BTC, ETH, and SOL on a trading schedule that involves a wide range of expiration windows and strike prices. The platform features low fees starting at 0.02% for makers and 0.03% for takers and going even lower depending on trading volume.

                        OKX settles all option trades in the cryptocurrency of the underlying option asset.

                        Fees

                        The OKX platform charges maker and taker fees for traders who add liquidity to the exchange and those who take liquidity, respectively. Maker fees start at 0.02%, and taker fees start at 0.03% and go down depending on monthly trading volume, total assets held, and how much OKB coin you have.

                        The fee tier structure is below:

                        Note: Option fees on OKX are capped at 12.5%.

                        Types of Options Available

                        Call and put options are available for:

                        Strike Prices

                        The OKX platform provides strike prices in the following increments:

                          Expiration Times

                          The OKX exchange maintains options with the following expiration dates:

                            Max Leverage

                            Up to 100x.

                            How Does Settlement Work?

                            All options are settled in the coin of the option’s underlying asset. BTC options are settled in BTC, ETH options in ETH, and SOL options in SOL.

                            How to Use OKX For Trading Crypto Options

                            Step 1: Head to https://www.okx.com/ and Log In or Sign Up.

                            Step 2: Navigate to the Trade > Contracts & margin trading from the top menu.

                            Step 3: Select the asset for which you want to buy an option at the top left corner.

                            Step 4: Click on any of the assets, and you’ll see a list of recommended trades. Scroll down to Simple Options Trading for the asset you pick and click on it.

                            Step 5: Choose the direction for your option. You’re either betting the asset will rise (Call) or will fall (Put).

                            Step 6: Choose the target price for your option.

                            Step 7: Click Buy next to the price you choose.

                            Step 8: Enter the amount you want to buy and click Confirm.

                            Crypto Options Trading vs. Traditional Options Trading

                            Crypto options work much like traditional options for trading stocks. There are some notable differences, however.

                            Price Volatility Risk Trading Open Exchanges
                            Traditional Options Lower Lower Monday through Friday, 9:30 a.m. to 4:00 p.m. Eastern Standard Time Usually focus just on traditional options
                            Crypto Options High Higher 24/7 Usually focus just on crypto options

                            Why Trade Crypto Options?

                            There are a variety of reasons to trade crypto options. These range from opportunistic speculation to risk management.

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