> For the complete documentation index, see [llms.txt](https://help.rails.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.rails.xyz/trading/options.md).

# Options

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](/trading/perpetuals.md), 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:

<table data-view="cards"><thead><tr><th align="center"></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td align="center"><strong>Options Page Guide</strong><br>Learn the main parts of the options trading page.</td><td><a href="/pages/tQwPNolQzOA9vn2cgJQo">/pages/tQwPNolQzOA9vn2cgJQo</a></td></tr><tr><td align="center"><strong>Placing Orders</strong><br>Learn how to place options orders on Rails.</td><td><a href="/pages/bLGN9bGsA3cLiuyEo0cm">/pages/bLGN9bGsA3cLiuyEo0cm</a></td></tr><tr><td align="center"><strong>Expiry &#x26; Settlement</strong><br>Learn how options expire and settle on Rails.</td><td><a href="/pages/ejb45H1pb4szoDjlKwrY">/pages/ejb45H1pb4szoDjlKwrY</a></td></tr><tr><td align="center"><strong>Margin &#x26; Liquidation</strong><br>Learn how margin and liquidation work for options.</td><td><a href="/pages/Kvfb97usyK6KoNrwQfER">/pages/Kvfb97usyK6KoNrwQfER</a></td></tr><tr><td align="center"><strong>Options Metrics Guide</strong><br>Understand option premium, payoff, and margin metrics.</td><td><a href="/pages/sWbZHQU8UthIBBab35kM">/pages/sWbZHQU8UthIBBab35kM</a></td></tr><tr><td align="center"><strong>Intro to Options</strong><br>Learn the core terms and mechanics of options.</td><td><a href="/pages/IUbBXlCaPRQF6h25WLT4">/pages/IUbBXlCaPRQF6h25WLT4</a></td></tr><tr><td align="center"><strong>Black-76 &#x26; the Greeks</strong><br>Learn how Rails calculates option prices and Greeks.</td><td><a href="/pages/rFy02RjAy9r2qkWRiWkK">/pages/rFy02RjAy9r2qkWRiWkK</a></td></tr><tr><td align="center"><strong>Pricing &#x26; Fees</strong><br>Review pricing and fee details for options.</td><td><a href="/pages/06qx6M3I7EFPAgVuOFMf">/pages/06qx6M3I7EFPAgVuOFMf</a></td></tr></tbody></table>

{% hint style="success" %}

#### New to Options?

If you have never traded options before, we recommend starting with our [Intro to Options](/trading/options/intro-to-options.md) article before proceeding through this section.
{% endhint %}