Example (Options)

Example 1: You buy a call option with $300 strike price for 0.01BTC. This is the right to buy 1 BTC for 300 dollars. Imagine at expiration, the BTC index reaches $400 and delivery price is 400 dollar. Now this option will expire with a value of 100USD, which is 0.25BTC at the price of 400 dollar. So at expiration of the option your account will be credited with 0.25BTC. Your initial purchase price was 0.01BTC, your profit is 0.24BTC

If you were the “seller” of the option, your account would be debited with 0.25BTC at expiration.

Any call options with an exercise price above 400 dollar would expire worthless.

Example 2: You buy a put option with strike price $300 for 0.01BTC. This is the right to sell 1BTC for 300 dollar. Imagine at expiration the delivery price is 200 dollar. This option will expire with a value of 100USD, which is 0.5BTC with BTC at $200. So as owner of this option, your account will be credited with 0.5BTC at expiration. Your purchased the option for 0.01BTC, so your total profit is 0.49BTC.

Example 3: You sell a put option with strike price $300 for 0.01BTC. The delivery price at expiration is $301. The option expires worthless. Buyer lost 0.01BTC, seller won 0.01BTC.

Example 4: You sell a call option with strike price $300 for 0.1BTC. The delivery price at expiration is $299. The call option expires worthless. Buyer lost 0.1BTC, seller won 0.1BTC.

This post is also available in: Chinese (Simplified)

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FIX API