Volatility Options is a simple options trading instrument, in which users are only required to predict the price direction of an asset in a minute correctly to gain high returns. Based on the markets of ETH/USDT, users may pick the option of “Within” or “Outside” the price range shown.
Profit=Investment Amount*Rate of Return
Loss=Investment Amount
There are THREE situations that could happen during the settlement:
1. When settlement price falls "Within" the range
a. Users who invest in "Within" will win, in which Return=Investment Amount*(1+Rate of Return at the time an order is placed);
b. Users who invest in "Outside" will lose their investment amount.
2. When settlement price falls "Outside" the range
a. Users who invest in "Outside" will win, in which Return=Investment Amount*(1+Rate of Return at the time an order is placed);
b. Users who invest in "Within" will lose their investment amount.
3. When settlement price equals to upper or lower limit of the price range
a. Users will receive the full amount of their investment.
E.g. A user who trades the option of “Within” will win when the settlement price falls within the price range in red and vice versa.
How to Trade Volatility Options?
- Log in to your account and click [BIB Wonderland] in the upper navigation followed by [Volatility Options].
- Transfer assets from your spot account to options account.
- Select asset and expiration time. Then, set the size of your trade.
- Click the green button (Outside) / red button (Within): the essence is to predict if the market price of the underlying asset will end up within or outside the range provided. If you expect the price to go outside the range, please click on the green button. If you expect the price to go within the range, please click on the red button.
- Wait a moment and check the trading result.