UpDown Options are a special type of option that automatically gets terminated (or ‘knocked out’) if the underlying asset’s price hits a predetermined ceiling or floor price, locking in your profits or protecting you against big losses.

You can choose to buy or sell a contract depending on which way you think the market will go:

UpDown Options enable you to manage risk because you will know the maximum possible loss or profit upfront.

To learn more, check out our University article

Yes, UpDown Options are offered by Crypto.com | Derivatives North America, which is operated by North American Derivatives Exchange, Inc. (Nadex) and is subject to US regulatory oversight by the Commodity Futures Trading Commission (CFTC).

Visit the Crypto.com website for contract specifications.

UpDown Options are available for the following cryptocurrencies: BTC, ETH and LTC.

Crypto.com | Derivatives North America is open for Crypto UpDown Options trading at 11pm ET Friday and expire at 4:15pm ET the following Friday unless the contracts are knocked out beforehand.

Daily maintenance periods occur between 5pm - 6pm ET, Saturday through Thursday. Weekly maintenance periods occur between 4:15pm - 11pm ET every Friday. During the maintenance periods, UpDown Options are not available to trade.

For updates, holiday schedules, and contract availability, see the Holiday and Hours page and the Notices page on the Crypto.com | Derivatives North America website.

To trade UpDown Options, you will need to set up an account with Crypto.com | Derivatives North America:

UpDown Options is a fully collateralized trading product. You need to have sufficient funds in your USD Fiat Wallet to trade UpDown Options. The calculation for your available balance excludes unsettled funds (i.e. via Instant Deposit). Visit our Help Center for more information on USD deposits with Wire Transfer and ACH Direct Deposit.

If you think an asset’s price will go up, you can buy an UpDown contract to open a long position.

If you think an asset’s price will go down, you can sell an UpDown contract to open a short position.

A position limit defines the maximum aggregate position you can hold for UpDown Options per underlying crypto market. The position limit for UpDown Options is 250.

This means you can have a maximum of 250 open positions for BTC and 250 for ETH. The open position count includes both long and short positions across all available contracts for the underlying market.

Example:

An order limit defines the maximum number of contracts you can trade in a single order. The order limit for UpDown Options is 30 and applies to orders that open or close positions.

The order limit may be subject to change.

The orders you submit to trade UpDown Options are Market Orders (“MO”) with protection on an Immediate-or-Cancel (“IOC”) basis.

An MO with protection is a request submitted to buy or sell a set number of UpDown Option contracts at the displayed market price when the order is submitted. In the event that the displayed market price is no longer available when Crypto.com | Derivatives North America receives the order, the MO with protection order will be acceptable to fill within the Slippage Tolerance (see next question).

An IOC order demands immediate execution or cancellation. It can be filled in whole or in part, with any remaining quantity automatically canceled. This is also known as Partial Fill.

Prior to 13 June, 2023, UpDown Options orders were MO with protection on a Fill-or-Kill (“FOK”) basis. While an FOK order also demands immediate execution or cancellation, it permits your order to be offered or bid one time only. If the entire order is not filled immediately, it is then automatically canceled.

Slippage Tolerance allows your trade to be completed even if the coin's price moves from the time you place the order to the time it is executed. It is a predetermined number of points, expressed as a dollar value, away from the displayed market price that will be acceptable to fill the MO with protection order.

If the coin’s price movement is within the tolerance you set and the full order quantity can be fulfilled, your order will be executed. If the coin’s price movement exceeds the tolerance you set, your order will not be executed because partial order fulfilments are not accepted.

The default tolerance per contract is US$15. It can be adjusted between US$1-25 by tapping on the Settings icon on the top-right corner of the UpDowns page.

The higher your Slippage Tolerance, the more likely your order will be executed. Orders exceeding your set tolerance will not be filled.

After you open a position, one of the following will occur:

Each contract has an expiry date. When the contract expires, your position is automatically closed and the profit/loss is realised.

The contract expiry date can be found under Open Position Details or Order History Details.

When the indicative price of the underlying asset hits the Target Price of the contract, your position is automatically closed and you will receive the maximum payout, excluding fees.

When the indicative price of the underlying asset hits the Stop Level of the contract, your position is automatically closed and you will take a loss on your trade.

When your position is knocked out, you will receive a push notification.

There are two ways you can close your position:

Method 1:

Method 2:

Example for Method 2:

You believe the price of BTC will go up and buy 2 contracts to open a long position. Afterwards, you change your forecast and think the price of BTC will go down instead. You select the same contract instrument in the ‘down’ direction and select 2 contracts to submit a sell order. As you cannot have a long and short position opened at the same time for any contract instrument, you will automatically be prompted to close the long position you had with this sell order.

Before confirming your order to place your trade, you will review the Indicative Amount you need to pay.

The Indicative Amount is the difference between the Current Price and the Stop Level, plus fees and your set Slippage Tolerance, taking into account the Tick Size and Tick Value of the contract. This amount will be held on your USD Fiat Wallet until your order is filled or rejected.

When your order is filled, the actual amount you pay will be reflected in your Order History. This will be the difference between the Trade Price and the Stop Level, taking into account the Tick Size and Tick Value of the contract, plus fees. Your maximum loss is the cost you put into the trade.

Example 1 - You open a long position:

ETH’s price is $1,850 and the contract you would like to buy has a Target of $1,920 and Stop of $1,820 with Tick Size 1 and Tick Value 2.5. Your Slippage Tolerance is set at $5 per contract and you buy 2 contracts.

The Indicative Amount you need to pay before confirming your order will be:

((Difference between the Current Price and Stop Level) * Tick Value / Tick Size + Slippage Tolerance + Exchange Fee + Technology Fee) * 2 contracts

= ((1,850 - 1,820) * 2.5 / 1 + 5 + 1 + 0.99) * 2 contracts

= $163.98

A hold will be put on your USD Fiat Wallet for this amount.

Your order was filled at $1,851.

The actual amount you paid to open 2 long positions is:

((Difference between the Trade Price and Stop Level) * Tick Value / Tick Size + Exchange Fee + Technology Fee) * 2 contracts

= ((1,851 - 1,820) * 2.5 / 1 + 1 + 0.99) * 2 contracts

= $158.98

Your USD Fiat Wallet will be debited of this amount.

Example 2 - You open a short position:

ETH’s price is $1,850 and the contract you would like to sell has a Target of $1,810 and Stop of $1,910 with Tick Size 1 and Tick Value 2.5. Your Slippage Tolerance is set at $5 per contract and you sell 2 contracts.

The Indicative Amount you need to pay before confirming your order will be:

((Difference between the Stop Level and Current Price) * Tick Value / Tick Size + Slippage Tolerance + Exchange Fee + Technology Fee) * 2 contracts

= ((1,910 - 1,850) * 2.5 / 1 + 5 + 1 + 0.99) * 2 contracts

= $331.98

A hold will be put on your USD Fiat Wallet for this amount.

Your order was filled at $1,849.

The actual amount you paid to open 2 short positions is:

((Difference between the Stop Level and Trade Price) * Tick Value / Tick Size + Exchange Fee + Technology Fee) * 2 contracts

= ((1,910 - 1,849) * 2.5 / 1 + 1 + 0.99) * 2 contracts

= $308.98

Your USD Fiat Wallet will be debited of this amount.

When a position is closed, your USD Fiat Wallet will be credited the difference between the Trade Price and Stop Level of the contract, taking into account the Tick Size and Tick Value of the contract, after deducting fees.

Example 1 - You have a long position:

You bought 2 contracts with a Target of $1,920 and Stop of $1,820 with Tick Size 1 and Tick Value 2.5.

The contract expires

At contract expiry, ETH’s price is $1,900.

You will be credited:

((Difference between Trade Price and Stop Level) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,900 - 1,820) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $396.02

The position is knocked out at Max Profit (Target)

You will be credited:

((Difference between Trade Price and Stop Level) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,920 - 1,820) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $496.02

The position is knocked out at Max Loss (Stop)

You will not be credited nor debited any amount. Your maximum loss is the cost you put into the trade.

You proactively close your position

You close your position when ETH’s price is $1,900.

You will be credited:

((Difference between Trade Price and Stop Level) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,900 - 1,820) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $396.02

Example 2 - You have a short position:

You sold 2 contracts with a Target of $1,810 and Stop of $1,910 with Tick Size 1 and Tick Value 2.5.

At contract expiry, ETH’s price is $1,890.

You will be credited:

((Difference between Stop Level and Trade Price) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,910 - 1,890) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $96.02

You will be credited:

((Difference between Stop Level and Trade Price) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,910 - 1,810) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $496.02

You will not be credited nor debited any amount. Your maximum loss is the cost you put into the trade.

You close your position when ETH’s price is $1,890.

You will be credited:

((Difference between Stop Level and Trade Price) * Tick Value / Tick Size - Exchange Fee - Technology Fee) * 2 contracts

= ((1,910 - 1,890) * 2.5 / 1 - 1 - 0.99) * 2 contracts

= $96.02

Your Profit/Loss is calculated for each contract instrument.

You will have Unrealised Profit/Loss if you have an open position. It will be updated as the current Trade Price moves and is calculated by comparing the current Trade Price of the underlying asset and the average Entry Price for your open positions, taking into account the Tick Size and Tick Value of the contract. This calculation excludes fees.

Example 1:

The Unrealized P&L excludes the fees charged for opening the position.

Unrealized P&L = ((Difference between Current Price and Average Entry Price) * Tick Value / Tick Size) * No. of contracts in the open position.

When the current price is $1,800, your Unrealized P&L is -$200.

((1,800 - 1,840) * 2.5 / 1) * 2 contracts = -200

When the current price moves to $1,860, your Unrealized P&L will be $1300.

((1,860 - 1,840) * 2.5 / 1) * 2 contracts = 100

Example 2:

The Unrealized P&L excludes the fees charged for opening the position.

Unrealized P&L = ((Difference between Average Entry Price and Current Price) * Tick Value / Tick Size) * No. of contracts in the open position

When the current price is $1,900, your Unrealized P&L is -$175.

((1,865 - 1,900) * 2.5 / 1) * 2 contracts = -175

When the current price moves to $1,840, your Unrealized P&L will be $125.

((1,865 - 1,840) * 2.5 / 1) * 2 contracts = 125

You will have Realised Profit/Loss if you have closed a position. It is calculated by comparing the Trade Price of the underlying asset when the position is closed and the average Entry Price for the positions that were closed, taking into account the Tick Size and Tick Value of the contract. This calculation includes fees.

For example, you have a long position of 2 contracts with an average Entry Price of $20,000 with Tick Size 1 and Tick Value 1, and you close your position when the price is $20,100. You incurred fees when you opened the position and when you closed the position. Your realised profit is $200, excluding fees.

Example 1a:

You have a long position of 2 contracts with an average Entry Price of $20,000, and you close your position when the price is $20,100. The contracts have Tick Size 1 and Tick Value 1. Your Realised P&L is $200, excluding fees.

The total fees you incurred to open and close the position is $7.96 (Refer to the Applicable Fees section).

Your Realised P&L is $192.04.

Example 1b:

You have a long position of 2 contracts with an average Entry Price of $20,000, and you close your position when the price is $19,900. The contracts have Tick Size 1 and Tick Value 1. Your Realised P&L is -$200, excluding fees.

The total fees you incurred to open and close the position is $7.96 (Refer to the Applicable Fees section).

Your Realised P&L is -$207.96.

Example 2a:

You have a short position of 2 contracts with an average Entry Price of $19,900, and you close your position when the price is $19,800. The contracts have Tick Size 1 and Tick Value 1. Your Realised P&L is $200, excluding fees.

The total fees you incurred to open and close the position is $7.96 (Refer to the Applicable Fees section).

Your Realised P&L is $192.04.

Example 2b:

You have a short position of 2 contracts with an average Entry Price of $19,900, and you close your position when the price is $20,000. The contracts have Tick Size 1 and Tick Value 1. Your Realised P&L is -$200, excluding fees.

The total fees you incurred to open and close the position is $7.96 (Refer to the Applicable Fees section).

Your Realised P&L is -$207.96.

The following fees are charged for each contract of a trade:

When you open a position, the fees are added to your trade amount and debited from your USD Fiat Wallet (See How do I calculate the amount to pay to enter into a trade?).

If you open a long position by buying 2 contracts, you will pay ($1 + $0.99)*2 = $3.98.

This also applies if you open a short position by selling 2 contracts. You will also pay $3.98.

When a position is closed, the fees are deducted before crediting your USD Fiat Wallet (See How do I calculate the amount I receive when I close a position?).

Your maximum loss is the amount you put into the trade when opening a position. If your position is closed at the Stop Level, or close to the Stop Level such that the full fee cannot be deducted, you will not receive credit but you will also not be further debited for fees.

If you close a long position by selling 2 contracts, you will incur fees of ($1 + $0.99)*2 = $3.98.

This also applies if you close a short position by buying 2 contracts. You will also incur $3.98 in fees.

Example:

BTC’s price is $20,000, and the contract you would like to buy has a Target of $20,400 and a Stop of $19,900.

Assuming the order is filled at $20,000, you will pay the difference:

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