Digital Options
Digital Options Overview
A Digital Call Option pays off a fixed amount if underlying asset price ends up above a certain level at expiry.
A Digital Put Option pays off a fixed amount if underlying asset price ends up below a certain level at expiry.
Placing Digital Option Orders
In the Market tab, select Digital Options
Enter your order parameters
Type: enter the contract you want to trade: CALL or PUT
Side: "+" indicates a LONG/BUY position on the contract selected, "–" indicates a SHORT/SELL position on the contract selected. (Note: a LONG PUT position is a SHORT position on the underlier)
Size: The exposure equivalent of your desired asset. Entering 1 means you are trading an option contract for one unit of the underlier.
Strike: The option strike price which will determine the payoff at maturity.
Unit Price: This is the order limit price which will be entered into the auction. The system feeds a suggested price, which is a theoretical mid price based on Ithaca protocol proprietary pricing model: these prices are not tradable neither are they guaranteeing a fill of entered. These prices are meant to help anchor a limit price to be entered that may have higher probability of a match. The indicated implied volatility is calculated by the same model.
Verify Order Summary
Order limit: Order price
Collateral requirement: The amount required to be locked so as to ensure that the order enters the auction.
Platform fee: Fee to be paid in case of execution.
Total premium: The total to be paid net of fees.
"Submit to Auction" and approve your transaction in your wallet
Digital Options Contract
| Item | Description |
|---|---|
Products | Binary Call Option (Binary Call) Binary Put Option (Binary Put) |
Payout Formula | Call if Reference Price > Strike then 1, else 0 Put if Reference Price <= Strike then 1, else 0 |
Underlying | WETH/USDC |
Settlement Style | Ithaca settlement |
Premium Currency | USDC |
Strike Currency | USDC |
Collateral Currency | Call USDC Put USDC |
Collateral Amount | Call 1 Put 1 |
Collateral Management | Fully collateralized, pre-funded |
Multiplier | 1 |
Reference Price | ITHACA Reference Fixing |
Expiry Dates | ( Ithaca Expiry ) |
Last updated
