Dear CoinEx users:
As part of our commitment to growing CoinEx into a world's leading crypto exchange, we are delighted to announce that Option Trading will be online on August 12, 2019 to further advance the crypto trading experience on CoinEx.
What’s Option Trading
Option trading is about the options of investments. An option contract offers the buyer the opportunity to buy or sell, depending on the type of contract they hold, the underlying asset: Call options allow the holder to buy the asset at a stated price within a specific timeframe while put options allow the holder to sell the asset at a stated price within a specific timeframe. Unlike trading in futures market, the option holder is not required to buy or sell the asset if they choose not to while the option issuer is only obliged by the contents of their issued option contract.
Highlights of CoinEx Option Trading
1. Finite losses VS Infinite profits
Take the Call options for instance: Each call option has a bullish buyer and a bearish seller. When the price of option index price keeps going up, the profits on the buyers side of the call option may be infinite; However, when the price of option index price keeps going down, the buyers of the call option can choose not to exercise his/her option by simply losing all the premium, costing a fixed amount of losses. Vice versa for the option issuers.
CoinEx strongly suggests that all option beginners may start option investment by becoming a buyer then an issuer after gaining more experiences.
2. Leverage without forced liquidation
Take the Call options for instance: Even if the price fluctuates drastically within the pre-exercising timeframe, the buyers of the call options may still gain profits after exercising the contract, as long as the coin price rises back to an ideal position before the option contract is exercised.
3. Multiple profit approaches
There are 3 key factors that influence the option values: The directions of option index price, fluctuation rate and time value.
Basically, the value of spot and futures tradings are up the rise/fall of trade mark price while in option trading, it is also determined by the fluctuation rate and time value. Therefore, users can make assessment and gain profits from these factors.
4. Versatile investment strategies
Most investments, such as spot and futures trading, are two-sided trades that involve a buyer and a seller while the option is a four-sided trade: Each call option has a bullish buyer and a bearish seller, while put options have a bearish buyer and a bullish seller. The feature allows investors to establish a multidimensional trading strategy.
Trade Option on CoinEx at
12:00 Aug 12, 2019 (UTC)
First Option Market
Exercise dates of BTC/USDT Option contract
Aug 13, Aug 16, Aug 31, Sep 30, Oct 31
1. Option trading is an innovative investment product and we strongly suggest that all users evaluate the risks you can handle before participation.
2. Theoretically, the losses of the issuers may be INFINITE, therefore CoinEx strongly suggests that all option newbies may start option investment by becoming a buyer then an issuer after gaining more experiences. Please evaluate and invest wisely based on your risk tolerance and financial resources.
Aug 10, 2019
CoinEx reserves the right of final explanation of this announcement.