2. BIT Options Introduction

BIT options are European-style options contracts on cryptocurrencies, allowing users to buy or sell cryptocurrency options and exercise on the expiration date.

As the buyer of the option, the user need to pay the seller a premium when buying the option, and BIT will automatically exercise or not exercise the option for the buyer on the expiration date based on the price of the underlying asset.

As the seller of the option, the user will receive the premium paid by the buyer, and meanwhile will be required to pay a portion of the margin as a guarantee when selling the option. In addition, the option seller will be required to cooperate with the execution or non-execution of the contract on the expiration date, and the system will release the account margin of the seller if there is no need to exercise the option on the expiration date.

Product Description

The options products of BIT support USD-margined options. 

Please note that USD margined options are only available for Unified Margin Mode (UM) users, but not for Classic Mode users (see how to migrate to UM Mode).

Expiration date offered by BIT

Divided by expiration date type, the option products offered by BIT are divided into daily options, weekly options, monthly options, and quarterly options, as follows.

USD-margined options