If you are new to cryptocurrency options, we sincerely recommend that you learn some basics about cryptocurrency and options before starting trading.
There are two versions of CoinCall’s options trading interface. A Pro version for professional options traders and a Lite version that offers a simplified interface and process for options beginners.
This article will give you a detailed introduction to the composition of the trading page of the Lite version of options to help you better start trading.
The options trading page consists of many sections, the following is an overview of the trading page:
Section 1: Account Overview
The account overview is located at the top of the transaction page. Once you enter the transaction page, you will see your account data, including total account assets (calculated in USD equivalent), Equity, Available balance, Margin balance, Unrealized profit and loss, and initial margin, Maintenance margin.
The upper right of this section shows the initial margin rate and maintenance margin rate of the account for you.
Section 2: Candlestick chart
The upper part shows the real-time mark price, index price, 24-hour highest and lowest transaction price, and 24-hour transaction volume.
The middle part is the candlestick chart, which revolves around the four data of the opening price, the highest price, the lowest price, and the closing price, reflecting the general market situation and price information. The time can be switched under the chart, and you can adjust the time span of the candle line according to your own needs.
Section 3: Options Market
The Options chain is one of the most important sections of options, it displays market information of options contracts, including Underlying price, Strike price, Mark Price, Greeks, Trading volume, Leverage, Ask/Bid Size, Ask/Bid Price, etc.
Both call and put options can be traded, and the selling information corresponding to different strike prices shows the price at which market participants are willing to buy or sell options contracts. Here you can choose the option product you want to buy/sell.
Look at the $30,000 BTC call option expiring April 28, 2023:
Select "Buy" for the trading direction at the top, "Call" for the option type, and "Expiring 28 APR 23" for the expiration date. Find 30,000 in the strike price of the trading market, click the number in the "Ask Price" column on the far right, and the expanded information will be the specific information of the option contract.
Section 4: Trading
The trading range is located on the far right side of the transaction page and consists of Orders and PnL Chart.
Users can choose the order type, price, and amount of the transaction. Your account's cost and balance will be displayed below the buy and sell buttons.
Next, you can enter order parameters to place your options order.
a Set order type via Limit/Market
b Enter the price to buy or sell
c Enter the amount to buy or sell
d Select Reduce Only(optional)
For market orders, the margin required will not be shown as the price will only be known after the order is executed.
According to the order information entered by you, the PnL Chart at the bottom can help you calculate the Expected Profit and Loss.
Taking the data in the screenshot as an example, you buy 1 BTC option contract "BTC-28APR23-30000-C" at a price of $1300
The option contract you chose is "BTC-28APR23-30000-C", which means a BTC call option with a strike price of $30,000 expiring on April 28, 2023.
If you buy an option contract of 1 BTC at a price of $1300, the cost is $1300.
Let's look at the PnL Chart:
A table is displayed at the top of the profit and loss statement. The data displayed is the rate of return and PnL data at different prices of the underlying BTC contract on the expiration date, corresponding to the function graph one by one.
PnL = Underlying Price - Strike Price - Option Premium
For example, when the underlying price is $31,300 on the expiration date, then my option transaction has reached breakeven, with a return rate of 0% and a profit of 0.
when the underlying price is $32,000 on the expiration date, then my options trade starts to make a profit, with a return rate of 54% and a profit of 700.
a. The underlying price on the expiration date > 31300
my transaction has started to make a profit. The higher the price, the greater the amount of profit, and there is no limit to the profit. (green line in PnL Chart)
b. The underlying price on the expiration date = 31300
my transaction has reached breakeven (the white dot in PnL Chart)
c. The underlying price on the expiration date < 31300
my transaction starts to lose. If the loss reaches my option premium, I will give up the exercise. The loss is limited, and the maximum loss amount is the option premium (the red line in PnL Chart)
Section 6: Position Overview
The Position Overview displays detailed information about your positions, including Position Summary, Expiration Date, Greeks, Position, Open Orders, Order History, Trade History Funding, and Delivery.
“Positions” will display the following information about your position: contract name, side, amount, entry price, mark price, ELP, profit and loss (return rate), initial margin, maintenance margin, Delta, Gamma, Vega, Theta, and Rho.
Before the option expires, you can go to the far right area to close the position. Here we provide two trading methods: Market All and Limit.
"Market All" means that you will sell/buy all the options at the market price.
To close a position at a Limit price, you need to enter the price you want to buy/sell the option in "Price", enter the number of options you want to buy/sell in "amount", and click the "Limit" button. The system will execute the closing for you.
The Open order will show you the specific information of the order that has not yet been filled. If you want to cancel the order, you can click “Cancel” on the far right to complete it.
The transaction records can be queried in "Orders History" and "Trade History ". The Funding shows you the breakdown of fees for each order. The details of the option exercise can be viewed in "Delivery".
This is the introduction to the option trading page. Hope to help you better start options trading.