An option is a financial contract that give its buyer the right, but not the obligation, to buy or sell an underlying asset for a specific price (called strike price) on (or possibly before) a specific time. The most widely used exchange for trading crypto options is Deribit. They offer European style options for Bitcoin and Ethereum. There are also several DeFi protocols that allow people to buy or sell options of smaller cryptocurrencies, as well as protocols that automatically execute various options strategies in order to generate yield on people's deposits.
Options are complex financial instruments with many potential uses and strategies to trade. A Call option allows its owner to buy a cryptocurrency at the strike price on the date of its expiry. Buyers of Call options are betting that the price will go up, roughly speaking. A Put option, on the other hand, allows its owner to sell at the strike price. Buyers of Put options are betting that the price will go down.
Since exercising options at expiry is optional, buying options has limited downside; we cannot lose more money than what we paid for purchasing the contracts, even if they end up valueless at expiry — unlike futures, where one may be forced to liquidate their entire margin account. Nonetheless, options are notoriously complex instruments. It is advisable to learn more about them than what fits in the scope of this page before jumping into trading them, lest we are parted from our money by smarter traders.
Similarly to futures, options can be used to speculate on cryptocurrencies with leverage, or to hedge exposure. Besides simply buying call or put options, traders can also make more sophisticated bets on the price (or volatility) of cryptocurrencies by combining buying and selling contracts at various strike prices and expiry dates.
Aevo is a a next-generation options exchange built from the ground-up for pro traders featuring high-performance orderbook, a robust margining system, and Daily, Weekly, Monthly and Quarterly options
Decentralised Perpetual Exchange. Trade BTC, ETH, AVAX and more with up to 50x leverage directly from your wallet
Cheddar Flow provides real time options order flow, dark pool orders, AI power alerts and more! Trade with confidence.
Institutional grade crypto derivatives - Trade options, futures, perpetuals and hedge all in one place.
Premia's automated options market enables best-in-class pricing based on realtime supply and demand, bringing fully-featured peer-to-pool trading and capital efficiency to DeFi options.
Pods Finance provides institutional-grade structured products for crypto assets. Their main product is stETHvv an ETH Volatility Vault
Ribbon Finance is a suite of DeFi protocols that help users access crypto structured products. It combines derivatives and fixed income to improve a portfolio's risk-return profile.
Binance is the world's largest centralised crypto exchange. Depending on your location they offer access to spot and futures markets, derivatives, finance and NFTs [When you deposit on a centralised exchange you receive an IOU for your tokens, which shows up as your wallet balance. When your tokens are held on a centralised exchange, you don't physically own them – the exchange does, and you may lose them]
A perpetual, oracle-free options protocol. Panoptic will transform what it means to trade options by getting rid of the Options chain and enabling liquid markets without the need for intermediaries and centralized points of failure.