FAQ-Options

* Why doesn’t Coincall support market orders for options?

Wide Spread for Some Strikes:
In instances where the spread for certain strikes is notably wide, particularly with end-of-term options, using market orders may result in executions at prices that deviate significantly from the mark price.

Discontinuity in Quote Prices:
Price discontinuities may occur on certain strike prices, particularly on altcoin options and strikes that are deep in or out of the money. Executing market orders when there are no counter prices on the order book may result in trades being executed at highly unfavorable prices.

Equivalent Immediate Execution with Limit Orders:
Users can achieve immediate execution similar to market orders by utilizing limit orders to take existing prices in the order book. This approach mitigates the concerns outlined in points 1 and 2.

Consistent Approach with Other Exchanges:
It’s worth noting that Other Exchange, has also refrained from implementing market orders.

Exclude market orders is driven by a commitment to ensuring fair and transparent trading practices, minimizing potential issues related to wide spreads and quote fluctuations. Limit orders not only replicate the immediacy of market orders but also address specific challenges associated with options trading.