How to play AscendEX options contract

Options contracts on AscendEX provide flexibility in trading strategies, allowing users to customize their risk exposure and optimize returns through options buying, selling, and managing.

Nov 25, 2024 at 08:55 am

How to Play AscendEX Options Contract

Introduction

AscendEX is a leading cryptocurrency exchange that offers a wide range of trading products, including options contracts. Options contracts are a type of derivative that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. This flexibility makes options contracts a popular tool for hedging risk and speculating on the price of an asset.

How to Play AscendEX Options Contracts

1. Open an AscendEX Account

The first step to playing AscendEX options contracts is to open an account. You can do this by visiting the AscendEX website and clicking on the "Sign Up" button. Once you have created an account, you will need to verify your identity by providing a government-issued ID.

2. Fund Your Account

Once your account is verified, you will need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency through AscendEX's fiat gateway.

3. Choose an Options Contract

Once your account is funded, you can start choosing options contracts to trade. AscendEX offers a variety of options contracts, including:

* **Call options:** Give the buyer the right to buy an underlying asset at a specified price on or before a certain date.
* **Put options:** Give the buyer the right to sell an underlying asset at a specified price on or before a certain date.
* **American options:** Can be exercised at any time on or before the expiration date.
* **European options:** Can only be exercised on the expiration date.

4. Place an Order

Once you have chosen an options contract, you can place an order to buy or sell it. AscendEX offers a variety of order types, including:

* **Market order:** Executes immediately at the current market price.
* **Limit order:** Executes at a specified price or better.
* **Stop order:** Executes when the underlying asset reaches a specified price.

5. Manage Your Position

Once you have placed an order, you can manage your position by monitoring its performance and making adjustments as needed. AscendEX offers a variety of tools to help you manage your positions, including:

* **Real-time charting:** Allows you to track the price of the underlying asset in real time.
* **Order book:** Shows the current bid and ask prices for the options contract.
* **Margin calculator:** Calculates the amount of margin required to maintain your position.

6. Exercise Your Option

If you are holding a call option and the underlying asset price rises above the strike price, you have the right to exercise the option. This means you can buy the underlying asset at the strike price and immediately sell it in the market for a profit. If you are holding a put option and the underlying asset price falls below the strike price, you have the right to exercise the option. This means you can sell the underlying asset at the strike price and immediately buy it in the market for a profit.

Tips for Playing AscendEX Options Contracts

* **Do your research:** Before you start trading options contracts, it is important to do your research and understand how they work.
* **Start small:** When you first start trading options contracts, it is best to start small and gradually increase your position size as you gain experience.
* **Use stop orders:** Stop orders can help you limit your losses in the event that the underlying asset price moves against you.
* **Monitor your positions:** It is important to monitor your positions regularly and make adjustments as needed.
* **Seek professional advice:** If you are not comfortable trading options contracts on your own, you may want to seek professional advice from a financial advisor.