About Strike Options

Information on Strike Options in the Crypto.com App, covering common queries and scenarios that users may encounter while trading.

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Written by Support Specialist
Updated over a week ago

What are Strike Options?

Strike Options are a CFTC-regulated crypto derivatives product in the Crypto.com App. It presents traders with a straightforward 'Yes' or 'No' decision when they predict whether an asset (e.g., BTC or ETH) will exceed a certain price at a specific time.

If you believe the asset will exceed a set price at contract expiration, you can select ‘Yes’ to buy a contract. Otherwise, you can choose ‘No’ to sell a contract instead. Strike Options are straightforward to trade because you either earn a predetermined profit if your prediction is correct, or lose only your initial investment and trading fees if it isn’t.

This clarity in outcomes allows you to know your potential gains and losses upfront, offering a controlled yet dynamic trading experience.

To learn more about Strike Options, check out our University article.

Is Strike Options regulated in the US?

Yes, akin to UpDown Options, Strike Options are offered by Crypto.com | Derivatives North America (CDNA) and is subject to US regulatory oversight by the Commodity Futures Trading Commission (CFTC).

Contract Specifications

Visit the official Crypto.com website for Strike Options contract specifications.

Supported Underlying Assets and Trading Hours

Cryptocurrencies

Strike Options are currently available for the following cryptocurrencies: BTC, ETH, LTC, BCH, DOGE, AVAX, LINK, DOT, SHIB, XLM and HBAR.

Trading Hours

Crypto.com | Derivatives North America opens Crypto Strike Options trading at 23:00 EST every Friday, with the last contract for that same period expiring at 16:00 EST the subsequent Friday. Scheduled maintenance takes place from 16:15 to 23:00 EST every Friday. During this period, Strike Options are not available for trading.

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

Forex

Strike Options are available for the following Forex pairs: AUD/USD, EUR/USD, GBP/USD, USD/JPY

Trading Hours

Crypto.com | Derivatives North America opens Forex Strike Options trading at 18:00 EST every Sunday, with the last contract for that same period expiring at 16:00 EST the subsequent Friday. Forex markets are closed for trading between 17:00 to 18:00 EST Monday - Thursday. Forex markets are also closed on Good Friday, Christmas Day, and New Year's Day (or when the holiday is observed). Modified and/or shortened trading hours are also in place during US holidays.

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

Onboarding

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

  1. Go to the Derivs tab in the Crypto.com App

  2. Set up your USD Fiat Wallet by tapping the top banner

  3. If your USD Fiat Wallet is set up, tap the ‘Enable Derivatives’ banner

  4. Review and accept the CDNA Terms & Conditions, then hit Confirm

  5. Answer the Qualifying Questions and tap Continue

  6. You will receive an in-app notification and email confirming your account’s approval

Funding

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

Trading

What are Long/Short Positions?

For Strike Options trading, taking a ‘long’ or ‘short’ position refers to your prediction about the asset’s price movement.

  • Long Position: When you take a long position in Strike Options, you are predicting that the price of the underlying asset will exceed the strike price when the contract expires. If your prediction is correct, you'll receive the contract payout and earn a profit. Essentially, you're saying “yes” to the proposition that the asset will reach a certain price at expiry.

  • Short Position: Conversely, taking a short position means you predict that the price of the underlying asset will not exceed the strike price at expiry. If your prediction is right, you earn a profit. In essence, you're saying "no" to the proposition that the asset will reach a certain price at expiry.

Remember, there are only ever two possible outcomes for Strike Options at expiry: you either make a predefined profit or lose the amount you paid to open the trade.

What are the limits for Strike Options?

Position Limits

A position limit defines the maximum aggregate position you can hold for Strike Options per underlying cryptocurrency. The position limit for Crypto Strike Options is 25,000. This means you can have a maximum of 25,000 open positions for BTC and 25,000 for ETH at the same time. The open position count includes both long and short positions across all available contracts for the underlying market.

For example:

  • You have an open long position of 24,000 BTC contracts expiring in 15 minutes and you strongly believe BTC will exceed the strike price at expiry.

  • Therefore, you would like to buy an additional 1,500 contracts. However, this trade will be unsuccessful as there would be a total of 25,500 open positions. Instead, you can buy 1,000 BTC contracts expiring at the same time, bringing your total open position count to 25,000 after the purchase.

  • Additionally, you believe the price of ETH will fall and won’t be able to exceed the strike price at expiry. You then open a short position of 5,000 ETH contracts expiring in two hours. This trade will be successful because it results in you having a total of 25,000 open long positions for BTC and 5,000 open short positions for ETH.

The position limit for FX Strike Options is 2,500.

What order types does Strike Options support?

The orders you submit to trade Strike 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 Strike Options 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 set 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 a ‘partial fill’.

What is Slippage Tolerance?

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.

If the coin’s price movement is within the tolerance you set and either the full or partial order quantity can be filled, your order will be executed on an Immediate-or-Cancel (‘IOC’) basis. If the coin’s price movement exceeds the tolerance you set, your order will not be executed because no order quantity can be filled in this case.

How do I set my Slippage Tolerance?

Slippage tolerance can be adjusted by tapping on the Settings button at the bottom of the Derivs page.

The default tolerance per Crypto Strike Options contract is US$0.50. It can be adjusted between US$0.10 to 2.50.

The default tolerance per FX Strike Options contract is US$5. It can be adjusted between US$1 to 25.

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

What happens when there is insufficient liquidity in the market?

When the market has insufficient liquidity, it means there is no party offering to match the other side of your order. You will either see that there are no price quotes available to place your trade or that your trade will not be executed.

Simply put, if you want to buy a contract, there must be another party selling it to match your purchase order, and vice versa.

Possible Reasons for Insufficient Liquidity Include:

  1. Expiry Time: As the expiry time of a Strike Options contract approaches, there is less time for the price to move above or below the strike price. This renders some contracts to be deep in-the-money (very likely to be correct in their prediction) or clearly out-of-the-money (very likely to be incorrect). This leads to fewer parties, or none at all, willing to take on the less desirable side of the trade. For example, if you wanted to exit a position that is out-of-the-money, the other party would have limited profit potential in matching your order.

    Three minutes before a contract expires, an alert will be shown on the Position Details screen, informing you that you are nearing the Low Liquidity Zone (the final 30 seconds before your contract expires).


    30 seconds before a contract expires, an alert will be shown to inform you that you are in the Low Liquidity Zone.

  2. Token Price Far from Strike Price: If the current price of the underlying token is significantly above or below the strike price of the Strike Options, the probability of the contract expiring profitably for a long position is either very high (deep in-the-money) or very low (clearly out-of-the money) respectively. Similar to the scenario above, this can lead to fewer parties, or none at all, willing to take the other side of the trade.

When There Is Insufficient Liquidity:

When you have an open position and there are no price quotes available for you to close your position, a Liquidity Alert will be shown on the Position Details screen. If there are less than 30 seconds to contract expiry, you will see the Low Liquidity Zone alert.

No price quotes available to close a position when the position has >30 seconds to expiry

No price quotes available to close a position when the position has <30 seconds to expiry

Liquidity Alert:

Low Liquidity Zone Alert:

When there is no Price to Close, your Unrealized PnL cannot be calculated. The Likely Payout will be shown to provide an indication of your probable payout (excluding fees) instead. This is based on where the indicative Token Market Price is relative to the Strike Price.

For example, if the Token Market Price is below the Strike Price for a long position, your contract is likely out-of-the-money. There is a high probability your payout will be $0.

However, if the Token Market Price is above the Strike Price for a long crypto Strike Options position, your contract is likely in-the-money. There is a probability your payout will be $10 (excluding fees).

Getting Started with Strike Options Trading

Opening a position

  1. Select a contract with your preferred specifications on the Trading screen

    1. Underlying Asset: BTC or ETH, for example

    2. Contract Duration: Including intraday, two hours, or 20 minutes

    3. Strike Price

  2. Determine whether the underlying asset’s price will exceed the strike price at the set expiration time

    1. If you think it will, choose ‘Yes’

    2. If you think it won’t, choose ‘No’

  3. Enter the number of contracts you’d like to trade

  4. Review your order details, including the ‘You Pay’ amount, and tap Place Order

  5. Tap Confirm in the pop-up window that appears. You also have the option to check the box above the Confirm button to bypass this step for future trades.

  6. Complete biometric or passcode verification

  7. Your order is placed. You will receive an in-app notification when your order is filled or rejected.

How do I calculate the amount I pay to enter a trade?

Before placing your trade, you will review the Indicative Amount (also known as the ‘You Pay’ amount on the Order Input screen) you need to pay.

This indicative amount is the Contract Price plus fees, and your set Slippage Tolerance, taking into account the Tick Size and Tick Value of the contract. This amount will be held in 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 page. This will be the Actual Contract Price, 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, including fees.

Example 1 - You open a Long position

The current market price of BTC is US$25,500. You think BTC’s price will rise and consider a contract with a Buy Price of US$4.20 and Strike Price of US$26,000 expiring in 20 minutes. You do not change your Slippage Tolerance, which remains as the default of US$0.50 per contract. You decide to buy 10 Strike Options contracts.

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

(Contract Buy Price + Slippage Tolerance + Exchange Fee + Technology Fee) * No. of Contracts Traded

= (4.20 + 0.50 + 0.15 + 0.14) * 10

= US$49.90

A hold is put on your USD Fiat Wallet for this amount. Your order is filled at US$4.30 per contract.

The Actual Amount you pay to open a long position on BTC with 10 contracts is:

(Actual Contract Buy Price + Exchange Fee + Technology Fee) * No. of Contracts Traded

= (4.3 + 0.15 + 0.14) * 10

= US$45.90

Your USD Fiat Wallet is debited this amount.

Example 2 - You open a Short position

The current market price of BTC is US$25,500. You’re considering a contract with a Sell Price of US$3.60 and a Strike Price of US$26,500 expiring in two hours. You don’t think BTC’s price will exceed the strike price at expiry and decide to open a short position of 20 Strike Options contracts. You adjust your slippage tolerance to US$0.20 per contract for this trade.

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

((Contract Payout - Contract Sell Price) + Slippage Tolerance + Exchange Fee + Technology Fee) * No. of Contracts Traded

= ((10 - 3.60) + 0.20 + 0.15 + 0.14) * 20

= US$137.80

A hold is put on your USD Fiat Wallet for this amount. Your order is filled at US$3.5.

The Actual Amount you pay to open a short position on BTC with 20 contracts is:

((Contract Payout - Actual Contract Sell Price) + Exchange Fee + Technology Fee) * No. of Contracts Traded

= ((10 - 3.5) + 0.15 + 0.14) * 20

= US$135.80

Your USD Fiat Wallet is debited this amount.

Closing a position

There are two scenarios where your existing open position will be closed:

The contract expires

Each contract has a specific expiry date and time. When the contract expires, your position is automatically closed, and the profit or loss is realized.

The contract expiry time can be found in either the ‘Open Positions’ widget under the Derivs tab or the ‘Open Positions’ page.

You proactively close your position

Method 1 - Via the ‘Open Positions’ widget / ‘Position Details’ page

  1. Tap Close Position in the ‘Open Positions’ widget under the Derivs tab, or
    Tap Close Position in the ‘Position Details’ page for your chosen open position

  2. Input the number of contracts you would like to close

  3. Tap Close Position > Confirm

  4. Your order is placed. You will receive an in-app notification when your order is filled or rejected.

Method 2 - Via trading

  1. Choose the opposite trade direction for the contract with the same specifications as your open position on the Trading screen.

    1. For example, if you previously chose ‘Yes’ to open a long position, you should now choose ‘No’ for the same contract in the open position

  2. After tapping Place Order on the Order Input screen, you will be prompted to close your current position before placing a new order in the opposite trade direction.

  3. Input the number of contracts you would like to close in the pop-up window that appears

  4. Tap Close Position > Confirm

  5. Your order is placed. You will receive an in-app notification when your order is filled or rejected.

How do I calculate the amount I’ll receive when I close a position?

  • When a position is closed before contract expiration, your USD Fiat Wallet will be credited the closing price of the contract, taking into account the Tick Size and Tick Value of the contract, after deducting fees.

  • When a position is closed at the contract expiration, and you’ve made a correct prediction, your USD Fiat Wallet will be credited the contract payout of US$10, taking into account the Tick Size and Tick Value of the contract, after deducting fees.

  • When a position is closed at the contract expiration, and you’ve made an incorrect prediction, you will not be credited or debited any amount. Your maximum loss is the cost you put into the trade, including fees.

Example 1 - You proactively close a Long position

The current market price of BTC is US$25,500, and there’s a BTC Strike Option contract with a strike price of US$26,000 expiring in 20 minutes that’s available to trade. At first, you believed BTC’s price would rise above the strike price at expiry. Thus, you bought 10 of these contracts at a Buy Price of US$4.20.

The market price of BTC rockets to US$26,100 before the expiration time, and you think it’s too risky to wait until the contract expires because the market price may not stay above the strike price at contract expiration. Therefore, you decide to close your position by selling all 10 BTC contracts at US$6.40. The final amount you will receive is calculated based on the following formula:

(Closing Price - Exchange Fee - Technology Fee) * No. of Contracts Traded

= (6.40 - 0.14 - 0.15) * 10

= US$61.10

In this case, your USD Fiat Wallet will be credited with this amount.

Example 2 - Your Long position is automatically closed profitably at expiry

With reference to Example 1 above, if BTC’s market price at contract expiration is US$26,500 — higher than the strike price of the contracts you bought —then the final amount you will receive is calculated based on the following formula:

(Contract Payout - Exchange Fee - Technology Fee) * No. of Contracts Traded

= ($10 - 0.14 - 0.15) * 10

= US$97.10

In this case, your USD Fiat Wallet will be credited with this amount.

Example 3 - Your Long position is automatically closed at a loss at expiry

With reference to Example 1, if BTC’s market price at contract expiration is US$25,900 — lower than the strike price of the contracts you bought Ø then you will not be credited or debited any amount. Your maximum loss is the initial amount you put into the trade, including fees.

Example 4 - You proactively close a Short position

The current market price of ETH is US$1,600, and there’s an ETH Strike Options contract with a strike price of US$1,640 expiring in two hours that’s available to trade. At first, you believed ETH’s price would not exceed the strike price at expiry. Thus, you sold 10 of these ETH contracts at a Sell Price of US$3.60.

However, the market price of ETH soars to US$1,630 before the expiry time, and you think it’s too risky to wait until the contract expires because the market price will likely rise above the strike price at contract expiration. This would cause you to incur a total loss on your initial investment at that time. To prevent this, you decide to close your position by buying the same 10 ETH contracts at US$5.20. The final amount you will receive is calculated based on the following formula:

((Contract Payout - Closing Price) - Exchange Fee - Technology Fee) * No. of Contracts Traded

= ((10 - 5.20) - 0.14 - 0.15) * 10

= US$45.10

In this case, your USD Fiat Wallet will be credited with this amount. Your profit or loss is determined by the difference between the credited amount and your initial investment.

Example 5 - Your Short position is automatically closed profitably at expiry

With reference to Example 4, if ETH’s market price at contract expiration is US$1,620 — lower than the strike price of the contracts you sold, which means your prediction is correct — then the final amount you will receive is calculated based on the following formula:

(Contract Payout - Exchange Fee - Technology Fee) * No. of Contracts Traded

= (10 * 0.10 / 0.10 - 0.14 - 0.15) * 10

= US$97.10

In this case, your USD Fiat Wallet will be credited with this amount. Your profit or loss is determined by the difference between the credited amount and your initial investment.

Example 6 - Your Short position is automatically closed at a loss at expiry

With reference to Example 5, if ETH’s market price at contract expiration is US$1,650 — higher than the strike price of the contracts you sold — then you will NOT be credited or debited any amount. Your maximum loss is the initial amount you put into the trade, including fees.

Profit/Loss Computation

Here’s how your profit/loss is calculated for each contract instrument:

Unrealized Profit/Loss

You will have an unrealized profit/loss if you have an open position. It will be updated as the current Contract Price moves and is calculated by comparing the current Contract Price 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 - You have an ETH Long position with 20 contracts

The current market price of ETH is US$1,810. You open a long position by buying 10 contracts at US$3.60 and 10 contracts at US$5.40 with the same strike price of US$1,800, expiring in 15 minutes. The average entry price of the 20 contracts is US$4.50.

If, before the contract expires, ETH’s market price rises to US$1,830, the ETH Contract Sell Price will correspondingly increase, rising to US$6.80, for example. The calculation for your unrealized profit/loss is:

(Contract Sell Price - Average Entry Price) * Number of Contracts in the Open Position

= (6.80 - 4.50) * 20

= US$46

You would have an unrealized profit in this case. This amount will be realized when you close your position.

If, before the contract expires, ETH’s market price falls to US$1,790, the ETH Contract Sell Price will correspondingly decrease, dropping to US$3.60, for example. The calculation for your unrealized profit/loss is:

(Contract Sell Price - Average Entry Price) * Number of Contracts in the Open Position

= (3.60 - 4.50) * 20

= - US$18

You would have an unrealized loss in this case. This amount will be realized when you close your position.

Please be reminded that in order to close your long position, you will need to sell the contract(s) you have bought.

Example 2 - You have a BTC Short position with 20 contracts

The current market price of BTC is US$32,500. You open a short position by selling 10 contracts at US$3.60 and 10 contracts at US$4.80 with the same strike price of US$32,700, expiring in one hour. The average entry price of the 20 contracts is US$4.20.

If, before the contract expires, BTC’s market price rises to US$32,700, the BTC Contract Buy Price will correspondingly increase, rising to US$5.40, for example. The calculation for your unrealized profit/loss is:

(Average Entry Price - Contract Buy Price) * Number of Contracts in the Open Position

= (4.20 - 5.40) * 20

= - US$24

You would have an unrealized loss in this case. This amount will be realized when you close your position.

If, before the contract expires, BTC’s market price falls to US$32,200, the ETH Contract Buy Price will correspondingly decrease, dropping to US$1.20, for example. The calculation for your unrealized profit/loss is:

(Average Entry Price - Contract Buy Price) * Number of Contracts in the Open Position

= (4.20 - 1.20) * 20

= US$60

You would have an unrealized profit in this case. This amount will be realized when you close your position.

Please be reminded that in order to close your short position, you will need to buy the contract(s) you have sold.

Realized Profit/Loss

When you close a position, you'll incur a realized profit/loss. It's determined by comparing the Contract Price of the underlying asset at the time of closing to the average entry price of the closed positions, factoring in the contract's Tick Size and Tick Value. All calculations include fees. Please note that The total Realized Profit and Loss (P&L) for your entire position including fees can be viewed on the Order History screen, while the realized P&L for a specific trade (including fees for closing a trade only) is displayed in the Close Position pop-up.

Example 1 - You close a BTC Long position with 50 contracts at expiry profitably

The current market price of BTC is US$32,500. You open a long position by buying 25 contracts at US$5.40 and 25 contracts at US$6.80 with the same strike price of US$32,400, expiring in 10 minutes. The average entry price of the 50 contracts is US$6.10.

You believed the bull trend would remain and chose to wait until the contract’s expiry time. The market price of BTC at expiry is US$32,650, and your prediction is correct. This means you’ll reap a US$10 payout per contract you bought in your open position. The calculation for your realized profit/loss is:

((Contract Payout - Average Entry Price) - Exchange Fee - Technology Fee) * Number of Contracts Closed

= ((10 - 6.10) - 0.15 - 0.14) * 50

= US$180.50

You would have a realized profit in this case.

Example 2 - You proactively close a BTC Long position with 50 contracts at a loss

With reference to Example 1, suppose BTC’s market price drops to US$32,300 before expiry, lower than when you purchased the contracts. With the Contract Price now at US$3.60 (a decrease in price corresponding to the drop in the underlying asset’s price), you decide to close your BTC long position early to mitigate your losses. The calculation for your realized profit/loss is:

((Contract Price - Average Entry Price) - Exchange Fee - Technology Fee) * Number of Contracts Closed

= ((3.60 - 6.10) - 0.15 - 0.14) * 50

= - US$139.50

You would have a realized loss in this case.

Example 3 - You close an ETH Short position with 20 contracts at expiry profitably

The current market price of ETH is US$1,650. You open a short position by selling 20 contracts at US$5.40 with the same strike price of US$1,640 expiring in 20 minutes. The average entry price of the 20 contracts is US$5.40.

You believed the bear trend would remain and waited until the contract’s expiry time. The market price of ETH at expiry is US$1,630, and your prediction is correct. This means you’ll reap a US$10 payout per contract you bought in your open position. The calculation for your realized profit/loss is:

(Average Entry Price - Exchange Fee - Technology Fee) * Number of Contracts Closed

= (5.40 - 0.14 - 0.15) * 20

= US$102.20

You would have a realized profit in this case.

Example 4 - You proactively close an ETH Short position with 20 contracts at a loss

With reference to Example 3, suppose ETH’s market price rises to US$1,660 before expiry, higher than when you purchased the contracts. With the Contract Price now at US$6.20 (a surge in price corresponding to the increase in the underlying asset’s price), you decide to close your ETH short position early to mitigate your losses. The calculation for your realized P&L is:

((Average Entry Price - Contract Price) - Exchange Fee - Technology Fee) * Number of Contracts Closed

= ((5.40 - 6.20) - 0.15 - 0.14) * 20

= - US$21.80

You would have a realized loss in this case.

Trading Fees

Crypto Strike Options

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

  • US$0.15 Exchange Fee

  • US$0.14 Technology Fee

FX Strike Options

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

  • US$1.00 Exchange Fee

  • US$0.99 Technology Fee

How are the fees charged?

When you open a position

When you open a Crypto Strike Options position, the fees are added to your trade amount and debited from your USD Fiat Wallet (see ‘How do I calculate the amount I pay to enter a trade?). If you open a long position by buying 10 contracts, you pay:

(Exchange Fee + Technology Fee) * Number of Contracts Traded

= ($0.15 + $0.14) * 10

= US$2.90

This also applies if you open a short position by selling 10 crypto contracts. You will pay US$2.90 as well.

When you close a position

When a Crypto Strike Positions position is closed, the same 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 limited to the initial amount you paid when opening a position. If, at the contract's expiration, the underlying asset's price deviates from the strike price in a direction that is not profitable for you, you won't receive any credit. However, you also won't incur additional debits for fees.

If you proactively close a long position by selling 10 crypto contracts, you will incur fees of (0.15 + 0.14) * 10 = US$2.90. This also applies if you close a short position by buying 10 crypto contracts. You will incur $2.90 in fees as well. However, you won’t lose more than the initial amount you paid.

Example

When you open a long Crypto Strike Options position, fees are added to the filled contract price before the total amount is debited from your USD Fiat Wallet. The formula for this debited amount is:

Filled Contract Price + Exchange Fee of US$0.15 + Technology Fee of US$0.14

Conversely, when you proactively close a position, fees are deducted before crediting the balance to your USD Fiat Wallet. If you close your Crypto Strike Options position, the credited amount equals:

Contract Closing Price - Exchange Fee of US$0.15 - Technology Fee of US$0.14

In the event of a loss with a Crypto Strike Options long position,

  • If the contract’s closing price is US$0.29 or more, the calculation above remains the same.

  • If the contract’s closing price is less than US$0.29, no amount is credited, and the Exchange Fee takes precedence over the Technology Fee.

    • For instance, if the contract closing price is US$0.16, you’ll incur an Exchange Fee of US$0.14 and a Technology Fee of US$0.02.

    • If the contract closing price is US$0.08, the Exchange Fee will be US$0.08 and no Technology Fee will be charged.

  • If your position expires in an unprofitable direction against your initial prediction, you won't incur any additional fees. Moreover, there will be no further credits or debits to your USD Fiat Wallet in such a scenario.

Where is this feature available?

The Strike Options feature is currently available in the United States only.

FAQs

Is Strike Options legal?

Strike Options is regulated by the Commodity Futures Trading Commission (CFTC), and it is legal to trade Strike Options on a CFTC-regulated exchange like Crypto.com | Derivatives North America.

What’s the minimum amount I can trade in Crypto Strike Options?

Crypto Strike Options are priced between US$0 and US$10. As the underlying asset's market price ascends, the Strike Options contract price also rises, reflecting the higher probability of it being above the predetermined strike price at expiry. Conversely, the Strike Options contract price decreases when the underlying asset's value drops. You need to find a strike price where you believe the outcome is possible and at a level of risk you are comfortable with.

What’s the minimum amount I can trade in FX Strike Options?

FX Strike Options are priced between US$0 and US$100.

Why am I not able to trade a contract when it is nearing expiry?

As a contract nears its expiration, there may be insufficient liquidity in the market, resulting in unavailable price quotes to complete a trade.

Why was my FX Strike Options order rejected when I had traded it on Nadex’s trading platform?

FX Strike Options can be traded on either the Crypto.com App or Nadex’s trading platform. When you have an open position for a contract on Nadex’s trading platform, that position can only be managed there. You will not see that open position on the App, nor be able to trade the same contract on the App, and vice versa.

Where can I learn more about Rolling Strike Options?

For detailed information about Rolling Strike Options, please visit this page.

Glossary

Term

Definition

Contract Range

A predefined boundary or limit that the contract's price can move within. For example, the price of a Crypto Strike Option contract can only move between 0 and 10; and the price of a FX Strike Option contract can move between 0 and 100.

Tick Size

The tick size represents the minimum price movement in a token's contract, indicating the smallest increment by which the price can change.

For example, if a BTC contract has a tick size of 0.10, it means the contract price can move in increments of 10 cents. So if the current price is $3.20, the next possible prices would be $3.30 or $3.10.

Tick Value

The value (in USD) of each minimum price movement (Tick Size) in an underlying asset. It represents how much the value of a position changes when the token’s price moves by one tick.

The ratio of Tick Value / Tick Size tells you the contract value per unit move in the underlying asset.

For example, if a BTC Strike Option has a Tick Size of 0.10 and Tick Value of US$0.10, for every US$0.10 shift in the price of a BTC contract, the BTC Strike Options contract value will move by US$0.10 as well.

Probability

The potential of your contract settling profitably at expiration (excluding fees). For Crypto Strike Options, it’s derived from the midpoint between the current bid and ask price multiplied by 10. For FX Strike Options, it’s derived from the midpoint between the current bid and ask price.

Max. Payout

Expressed as a multiplier, it indicates how many times the initial investment a trader can receive (including fees) as their payout if their prediction is correct.

Contract Payout

The fixed amount a trader will receive if their prediction about the underlying asset's price movement is correct. It's predetermined and remains the same regardless of the extent of the asset's price movement.

Expiry Time

This is the specific moment when the contract concludes, determining whether it ends profitably or at a loss.

Strike Price

The predetermined price that a token is expected to be above (yielding profit for a long position), at or below (yielding profit for a short position) at expiration, guiding traders to buy or sell Strike Options contracts.

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