In News
Minimum Order Size and Volume Tick Size Changes on 25th of November.
On Tuesday, November 25th, we are making changes to our minimum order size and volume tick size.
In Education
Options
An option is a contract that gives the buyer the right, not the obligation, to trade an underlying at a preset strike on or before a stated expiry. A call conveys the right to buy. A put conveys the right to sell. Buyers pay an upfront premium and can exit before expiry by selling the option back to the market. Options are used to seek upside with less capital, hedge downside, or monetize views on volatility.
In Education
Derivatives Basics
Derivatives move risk without moving the asset. Dated futures have cost of carry, perps have funding, options have convexity. These create a basis between derivative price and spot. You can trade the curve with calendars and future rolls to shift exposure across expiries while keeping net delta near zero.
In Education
Futures & Perpetuals
Traditional futures are standardized legal contracts to buy or sell an underlying asset at a preset price. Every traditional future has a set expiration date, upon which the contract is settled and ceases. Because futures have a finite lifespan, their price is governed by the market’s forecast of the asset value at the future’s expiration date. Taking into accounts factors like interest rates and storage costs (‘cost of carry’).
In Education
Shorting
Short selling on a crypto derivatives exchange is a strategy used to profit from a decline in an asset's price. Unlike traditional shorting, which involves borrowing an asset to sell it, derivative shorting involves entering a contract that increases in value as the underlying asset's price falls.
In Education
The Greeks
The Greeks are a set of measures for dimensions of risk in an options position. They are essential for understanding how the price of an option is expected to change in response to different market forces. Breaking down risk into these specific components allows traders to conduct proper risk management and break away from speculative trading. The Greeks provide a multi-dimensional view of an option’s sensitivity, making it possible to hedge their exposures to create positions that align with market forecasts beyond price direction.
In Education
Delta Hedging
Delta hedging is an options trading strategy designed to eliminate directional risk, also known as price risk. It aims to make a portfolio's value immune to small price movements in the underlying asset.
In Education
Volatility
Volatility isn't just a metric—it's the core element that determines price and strategy. It measures the magnitude and frequency of an asset's price swings, representing the market's inherent uncertainty and risk.
