Options trading has become an increasingly popular way for investors to manage risk, speculate on price movements, and enhance portfolio returns—especially in the fast-evolving world of digital assets. At OKX, one of the leading platforms for crypto derivatives, options contracts offer traders a flexible and powerful tool to express market views with defined risk or reward profiles. This guide provides a comprehensive overview of OKX options contracts, explaining their mechanics, key features, and how they differ from traditional futures (delivery) contracts.
What Are Options?
An option is a financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date. This fundamental characteristic makes options uniquely valuable for hedging and strategic trading.
There are two primary outcomes at expiration:
- If exercising the option is profitable for the buyer, they can choose to exercise it and realize gains. The seller (writer) must then fulfill their obligation.
- If the option is out of the money, the buyer can simply let it expire, losing only the premium paid. The seller keeps the premium as profit.
This asymmetric risk-reward structure is what distinguishes options from other derivatives like futures.
Key Components of an Option
To fully understand how options work on OKX, it's essential to grasp their core components:
🔹 Underlying Asset
The asset that the option is based on. On OKX, options are currently available for:
- Bitcoin (BTC/USD Index)
- Ethereum (ETH/USD Index)
These indices reflect real-time market prices and serve as the benchmark for settlement.
🔹 Expiration Date
This is the date when the option contract expires. After this point, the contract becomes void. OKX offers a wide range of expiration schedules:
- Daily, weekly, bi-weekly
- Monthly, quarterly, and even longer-dated options
👉 Discover how different expiration dates can align with your trading strategy.
🔹 Strike Price
Also known as the exercise price, this is the price at which the holder can buy (call option) or sell (put option) the underlying asset if they choose to exercise.
🔹 Option Type
Options are categorized by:
- Call Option: Gives the right to buy the underlying at the strike price.
- Put Option: Grants the right to sell the underlying at the strike price.
Additionally, options can be classified by exercise style:
- European-style options: Can only be exercised on the expiration date.
- Note: All OKX options are European-style, meaning early exercise is not permitted.
🔹 Premium
The price paid by the buyer to acquire the option. It’s influenced by factors like time to expiration, volatility, and how close the current price is to the strike.
🔹 Moneyness
Describes whether an option would have intrinsic value if exercised immediately:
| Option Type | Relationship (S = Index Price, K = Strike) | Status |
|---|---|---|
| Call | S > K | In-the-money |
| Call | S < K | Out-of-the-money |
| Call/Put | S = K | At-the-money |
OKX Options Contract Specifications
Understanding the technical details helps traders execute more informed decisions. Here's a breakdown of standard specifications for OKX options:
Contract Size:
- BTC options: 1 BTC per contract
- ETH options: 1 ETH per contract
Contract Multiplier:
- BTC: 0.01
- ETH: 0.1
Settlement Currency:
- BTC options settle in BTC
- ETH options settle in ETH
Minimum Price Increment:
- For options priced below 0.005 BTC/ETH: 0.0001
- Above that: 0.0005
- Mark Price:
Determined using the Black model, updated in real-time with implied volatility derived from live OKX option quotes. - Trading Hours:
Available 24/7, providing global access without downtime. - Settlement Method:
All options are cash-settled, meaning no physical delivery of assets occurs. - Delivery Time:
Final settlement happens at 16:00 UTC+8 on the expiration day. - Settlement Price:
Based on the time-weighted average of the underlying index price between 15:00 and 16:00 UTC+8, with index updates every 200ms for accuracy. - Contract Naming Convention:
Follows the format:Underlying-Expiry Date-Strike Price-Type
Example:BTC-250328-75000-C
How OKX Options Differ From Delivery Contracts
While both options and futures allow exposure to crypto price movements, their risk structures and obligations vary significantly.
| Feature | OKX Options | OKX Delivery Contracts |
|---|---|---|
| Rights vs. Obligations | Buyer has rights; seller has obligations | Both parties have mutual obligations |
| Margin Requirements | Buyers pay only premium; sellers post margin | Both long and short must post margin |
| Risk Profile | Buyer’s loss capped at premium; seller’s risk potentially unlimited | Both sides face unlimited profit/loss potential |
| Settlement | Cash-settled | Physical or cash delivery |
This contrast makes options particularly attractive for those seeking defined-risk strategies—such as protecting a crypto portfolio against downturns without having to sell holdings.
👉 Learn how you can use options to hedge your crypto investments effectively.
Why Trade Options on OKX?
OKX stands out in the digital asset derivatives space due to its robust infrastructure, deep liquidity, and advanced trading tools. Key advantages include:
- Flexible Expiry Cycles: From same-day to quarterly expiries, traders can match options with short-term trades or long-term outlooks.
- Real-Time Marking & Settlement Models: Transparent pricing powered by proven financial models increases fairness and predictability.
- Low Latency Execution: High-performance matching engine ensures fast order fills even during volatile markets.
- Comprehensive Risk Controls: Built-in limits on position sizes and price bands help maintain market stability.
Frequently Asked Questions (FAQ)
Q: Can I exercise my option before expiration on OKX?
A: No. All OKX options are European-style, meaning they can only be exercised at expiration.
Q: How is the final settlement price calculated?
A: It’s based on the time-weighted average of the underlying index from 15:00 to 16:00 UTC+8 on expiry day, with data sampled every 200ms.
Q: Do I need to hold BTC or ETH to trade BTC or ETH options?
A: Not necessarily. Since contracts are cash-settled, you can trade them using stablecoins or other supported collateral, depending on your account type.
Q: What happens if my option expires in-the-money?
A: In-the-money options are automatically exercised at expiry. The profit is settled in the underlying cryptocurrency (BTC or ETH).
Q: Is there a limit to how many options I can trade?
A: Yes. OKX enforces position limits and price bands to prevent manipulation and excessive concentration. These vary by contract and user tier.
Q: How do I calculate potential profit from a call or put option?
A: For calls: Profit = (Index Price – Strike Price) × Multiplier – Premium Paid
For puts: Profit = (Strike Price – Index Price) × Multiplier – Premium Paid
Final Thoughts
Options on OKX provide a sophisticated yet accessible way to engage with cryptocurrency markets. Whether you're looking to hedge existing positions, speculate with limited downside, or generate income through writing strategies, OKX's structured and transparent environment supports a wide range of trading objectives.
With clear contract terms, reliable settlement mechanisms, and support for major cryptos like Bitcoin and Ethereum, OKX continues to empower traders worldwide with institutional-grade tools.
👉 Start exploring options trading today and unlock new dimensions in your crypto strategy.