Options Overview

An option allows the buyer the right, but not the obligation, to buy or sell a set quantity or value of a particular asset at a fixed price by a set date.

A Call Option gives the buyer the right to buy an asset at the strike at contract expiry.

A Put Option gives the buyer the right to sell an asset at the strike at contract expiry.

The option buyer pays premium at inception and receives a payout depending on the value of the asset at expiry (cash settled).

Placing Option Orders

  1. In the Market tab, select 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 price. 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

The payoff diagram displays the payoff of the entered trade at expiry already taking contract size into account.

Options Contract



Call Option (Call)

Put Option (Put)

Payout Formula

Call Max ( Reference Price – Strike Price , 0 ) Put Max ( Strike Price – Reference Price , 0 )



Settlement Style

Ithaca settlement

Exercise Style

European, auto-exercised

Premium Currency


Settlement Currency

Depending on user’s portfolio subject to collateral optimization settlement currency could be different

Strike Currency


Collateral Currency



Collateral Amount

Call 1 Underlying unit

Put amount equal to Strike Price

Collateral Management

Fully collateralized, pre-funded



Strike Price

Fixed standardized published levels

Reference Price

ITHACA Reference Fixing

Expiry Time

0800hrs UTC Friday

Expiry Dates

( Ithaca Expiry )

Last updated