Options trading has become a powerful tool for investors seeking flexibility, risk management, and strategic opportunities in the digital asset markets. Among leading platforms offering advanced derivatives, OKX Options stands out with its structured European-style contracts, competitive pricing, and robust infrastructure. This guide explores the fundamentals of options, dives into OKX’s contract specifications, compares options with futures, and answers common questions—equipping you with actionable insights to navigate this dynamic market.
What Are Options?
Options are financial derivatives that grant the holder the right—but not the obligation—to buy or sell an underlying asset at a predetermined strike price on or before a specific expiration date. This unique feature makes options highly versatile for hedging, speculation, and income generation.
When you purchase an option, you pay a fee known as the option premium. The seller (or writer) of the option collects this premium but assumes the obligation to fulfill the contract if the buyer chooses to exercise it.
There are two primary types of options:
- Call Options: Give the holder the right to buy the underlying asset at the strike price.
- Put Options: Give the holder the right to sell the underlying asset at the strike price.
Crucially, if exercising the option isn’t profitable, the buyer can let it expire worthless—limiting losses to just the premium paid.
Key Concepts in Options Trading
- Underlying Asset: The financial instrument on which the option is based. On OKX, options are available for BTC/USD and ETH/USD indices.
- Expiration Date: The date when the option contract ceases to exist. OKX offers daily, weekly, monthly, and quarterly expiries.
- Strike Price: The fixed price at which the underlying can be bought (call) or sold (put).
- Exercise Style: OKX options are European-style, meaning they can only be exercised at expiration—not before.
- Settlement: Options on OKX are cash-settled, and in-the-money (ITM) contracts are automatically exercised upon expiry.
In-the-Money, At-the-Money, Out-of-the-Money
An option’s moneyness depends on the relationship between the current market price (S) and the strike price (K):
Call Option
- S > K → In-the-Money (ITM)
- S = K → At-the-Money (ATM)
- S < K → Out-of-the-Money (OTM)
Put Option
- S < K → ITM
- S = K → ATM
- S > K → OTM
Understanding these states helps traders assess potential profitability and select appropriate strategies.
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OKX Options Contract Specifications
OKX provides a transparent and standardized framework for trading Bitcoin and Ethereum options. Below is a detailed overview of key contract parameters designed for clarity and efficiency.
Contract Type
Available for both Call and Put options.
Exercise Style
All OKX options are European-style, exercisable only at expiration. This simplifies risk modeling and aligns with institutional-grade derivatives practices.
Expiration Cycles
OKX supports multiple expiration frequencies:
- Dailies: 1–4 days out
- Weeklies: 1–3 weeks out
- Monthlies: 1–3 months out
- Quarterlies: Following March, June, September, December cycles
This variety allows traders to match their market outlook with precise time horizons.
Underlying Assets
Options are based on:
- BTC/USD Index
- ETH/USD Index
These indices aggregate prices from major exchanges to ensure fairness and resistance to manipulation.
Contract Size & Multiplier
- BTC Options: 1 BTC per contract, multiplier of 0.01
- ETH Options: 1 ETH per contract, multiplier of 0.1
The multiplier determines how much each tick movement affects the contract value.
Settlement Coin
Settled in the underlying cryptocurrency:
- BTC options → settled in BTC
- ETH options → settled in ETH
This enables seamless integration into crypto-native portfolios.
Tick Size
Pricing precision varies by premium level:
- Below 0.005 BTC/ETH → tick size: 0.0001
- Above 0.005 BTC/ETH → tick size: 0.0005
Fine-grained pricing enhances execution accuracy.
Mark Price & Volatility Modeling
OKX uses the Black model to calculate real-time mark prices. Implied volatility is derived from live market data, bounded by a volatility cap and floor to prevent extreme mispricing during volatile periods.
Trading Hours
Available 24/7, reflecting the non-stop nature of cryptocurrency markets.
Expiry & Settlement Details
- Creation Time: New series listed at 8:30 UTC
- Expiry Time: 08:00 UTC on expiration day
- Settlement Price: Time-weighted average of the index price over the final hour before expiry (snapshots taken every 200ms)
This methodology ensures fair and transparent settlement unaffected by last-second price spikes.
Margin & Fees
- Sellers must post margin; buyers pay only the premium (except under Portfolio Margin)
- Trading fees follow OKX’s standard rate structure
Contract Naming Convention
Contracts follow a clear format: Underlying – Expiration Date – Strike Price – Type
Example: BTC-250411-70000-C
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OKX Options vs. Futures: Key Differences
While both options and futures are derivatives used for speculation and hedging, their risk-reward profiles differ significantly.
| Feature | OKX Options | OKX Futures |
|---|---|---|
| Rights & Obligations | Buyer has right (not obligation); seller must fulfill if exercised | Both parties are obligated to settle |
| Margin Requirements | Buyer pays premium only; seller posts margin | Both long and short positions require margin |
| Risk Profile | Buyer’s loss capped at premium; seller faces unlimited risk | Both sides face potentially unlimited gains or losses |
This contrast makes options particularly attractive for risk-defined strategies. For example, a trader bullish on Bitcoin can buy a call option—capping downside risk while retaining full upside potential.
Conversely, futures traders must manage liquidation risks due to leverage and margin calls.
Frequently Asked Questions (FAQ)
Q: Are OKX options suitable for beginners?
A: Yes, especially for those looking to limit risk. Buying options caps potential losses at the premium paid, making them a safer entry point than leveraged futures.
Q: Can I trade options after regular market hours?
A: Absolutely. OKX offers 24/7 trading, allowing global participants to react to news and price movements anytime.
Q: How are options settled on OKX?
A: All options are cash-settled in the underlying coin (BTC or ETH). In-the-money contracts are automatically exercised at expiry using a time-weighted average index price.
Q: What happens if my option expires out-of-the-money?
A: It expires worthless. You lose only the premium paid—no further action or cost is incurred.
Q: Is margin required to buy options?
A: No, unless using Portfolio Margin. Regular buyers only pay the premium. Sellers, however, must post margin due to their obligation.
Q: How does OKX prevent manipulation during settlement?
A: By using a one-hour time-weighted average price with 200ms snapshots across multiple exchanges, ensuring a fair and resilient final price.
With flexible expiries, clear mechanics, and strong risk controls, OKX Options offer a professional-grade environment for crypto derivatives trading. Whether you're hedging exposure or building directional strategies, understanding these instruments empowers smarter decision-making in volatile markets.
👉 Start trading options today with deep liquidity and institutional-grade tools.