Options

Coming Soon to Rails: Options Trading

Options are derivative contracts that give you the right, but not the obligation, to buy or sell an asset at a set price on or before expiration. You can use them to express a bullish or bearish view, hedge an existing position, or define risk more precisely than with spot or perpetual trading.

There are two core option types:

• Calls are typically used when you expect the price to rise.

• Puts are typically used when you expect the price to fall or when you want downside protection.

Unlike perpetuals, options have a premium and an expiration date, and their value depends on time, volatility, and the relationship between the strike price and market price.

Find out more about options in the sections below:

Options Page Guide Learn the main parts of the options trading page.

Placing Orders Learn how to place options orders on Rails.

Expiry & Settlement Learn how options expire and settle on Rails.

Margin & Liquidation Learn how margin and liquidation work for options.

Options Metrics Guide Understand option premium, payoff, and margin metrics.

Intro to Options Learn the core terms and mechanics of options.

Black-76 & the Greeks Learn how Rails calculates option prices and Greeks.

Pricing & Fees Review pricing and fee details for options.

New to Options?

If you have never traded options before, we recommend starting with our Intro to Options article before proceeding through this section.