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

  1. In the Market tab, select Digital Options

  2. 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.

  3. 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.

  4. "Submit to Auction" and approve your transaction in your wallet

Digital Options Contract

Last updated