Essential for Options Trading! One-click automation to build and execute combination strategies for multiple options, effectively reducing market volatility risks.
Combo Trade is a very useful tool for traders to execute multi-leg strategies in an automated and efficient manner. By using this function, you can get more favorable pricing in the market, and mitigate risk for active strategy.
Main Interface
You can use Combo Trade by first selecting the underlying asset you would like to trade on the top of the module, and you can unfold all legs to see all the details at the same time. Then there are several pre-built strategies that you can choose from, or you can build your custom strategies too.
In the main interface, you can modify the details of the instruments. If you are trading options, you can adjust Expiry, Strike, Qty, and Price to your needs; if you are trading futures, you can also change Expiry, Qty, and Price.
In the price section, our default setting is to automatically set the order price to the selected Best bid/ask price. If there is no bid or ask price, it will default to the market price. Users can also manually modify it.
Orders placed under combo trade will be executed as long as there is sufficient margin. You can view the pending orders in the "Open Orders" section.
Obviously, on the main interface, there are some more handy features for you to build your strategy efficiently.
Straddle
Volatility Strategy. Traders simultaneously buy or sell both Call and Put Options with the same strike price, expiration date, and underlying asset. When going long in this strategy, you will pay a premium as the cost of entering the trade. You will earn unlimited profits and take on limited losses when the underlying price fluctuates dramatically.
Strangle
Volatility Strategy. Traders simultaneously buy or sell a Put Option with a lower strike price and a Call Option with a higher strike price. When going long in this strategy, you pay a lower premium than with a Straddle Strategy. Although your profit range is smaller than with a Straddle Strategy, you can still make unlimited profits when the underlying price fluctuates dramatically.
Iron Condor
In a Long Iron Condor Strategy, traders buy a Put Option with a low strike price, sell a Put Option with an intermediate strike price; sell a Call Option with an intermediate strike price, but above the Put Option, and buy a Call Option with a high strike price. The four strike prices are equidistantly distributed. These options have the same expiration date and the same underlying asset. When going long in this strategy, you pay a higher premium to lock in the risk, but you can get a higher profit range than the Butterfly Strategy from the price fluctuations of the underlying market.
Call/Put Spread
Vertical Spread Strategy offers four combinations of bull calls, bull puts, bear calls, and bear puts. In a long call spread strategy, traders buy a Call Option with a lower strike price and sell a Call Option with a higher strike price. The premium is paid at the beginning of the period, and you will receive gains when the underlying price has a significant increase.
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