Tradoor
Tradoor Mini App User Guide
Tradoor Mini App User Guide
  • 👋Outline
  • 💱HOW TO TRADE ON TRADOOR
    • 🤔How do I make my first trade on Tradoor?
    • ⚙️How do I set up my wallet to start trading on Tradoor?
    • 💰How do I add funds to my Telegram wallet?
    • 📊Trading Perps 101
      • 🤔What is Perps Trading?
      • 🧭How to navigate Tradoor's Perps Trading Page
        • What does "Symbol" mean?
        • What does "Index Price" mean?
        • What does "24h" change mean?
        • What does "Open Interest" mean?
        • What does "Long/Short Rate" mean?
        • What does "1h Funding" and "1h Rollover" mean?
        • What does "Max Leverage" and "Average Leverage" mean?
        • What does "Available Liquidity" mean?
        • What does the Perps price chart mean?
        • What do the "long" and "short" button mean?
      • 🥇How do I make my first trade in Perps?
        • (1) Select between "Market Order" and "Limit Order"
        • (2) Enter the amount you would like to trade with
        • (3) Select the leverage you would like to trade with
        • (4) Have a look at your position
        • (5) Select your TP/SL
      • 🤑How do I make a profitable trade in Perps?
    • 📈Trading Options 101
      • 🧐What is Options Trading?
      • 🗺️How to navigate Tradoor's Classic Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does the "Options Price Chart" mean?
        • What do "Call" and "Put" mean?
        • What do "Positions" and "History" mean?
      • ☝️How do I make my first Classic Options trade?
      • 🚸How to navigate Tradoor's DNT Options Page
        • What does "Symbol" mean?
        • What does "Expiry" mean?
        • What does "Strike Price" mean?
        • What does "Trigger" mean?
        • What do "Double No Touch Odds" mean?
        • What does the "Options Price Chart" mean?
        • What do "Positions" and "History" mean?
      • 🏆How do I make my first DNT Options trade?
      • 💰How do I make a profitable trade in Options?
      • 🎟️How do I use my Options Voucher?
  • ⚡Turbo Mode on Tradoor
    • ❔What is Turbo Mode?
    • 🌩️How do I start trading with Turbo Mode?
    • ✏️FAQs about Turbo Mode
  • 🌊ADD LIQUIDITY ON TRADOOR
    • 👀What is liquidity?
    • ❔Why add liquidity?
    • 🚰How to add liquidity to pools?
  • ❔Frequently Asked Questions
  • 🌟EARN REWARDS ON TRADOOR
    • 🎁What are $DOOR points?
    • 📊Earn rewards by trading
    • 👯Earn rewards by referring friends
    • 🏁Earn rewards by completing tasks
    • 🐂Earn rewards by feeding Sausage
  • 🤝GET CONNECTED ON TRADOOR
    • 👋How do I get connected on Tradoor?
  • 🛠️OTHERS
    • 🔮Oracle Data
Powered by GitBook
On this page
  • FAQs
  • What is Options - Classic?
  • What is Options - DNT?
  • What is the difference between Classic Options and DNT Options?
  • 1. Basic Structure:
  • 2. Payout Conditions:
  • 3. Risk and Strategy:
  • 4. Market Conditions for Use:
  • 5. Premiums and Payouts:
  • Summary of Differences:
  1. HOW TO TRADE ON TRADOOR
  2. Trading Options 101

What is Options Trading?

PreviousTrading Options 101NextHow to navigate Tradoor's Classic Options Page

Last updated 1 month ago

FAQs


What is Options - Classic?

  1. Classic Options contracts in crypto give traders the right (but not the obligation) to buy or sell an asset at a set price within a specific timeframe.

  2. There are two types: call options for buying and put options for selling.

  3. Traders use options to hedge against volatility or to speculate with limited risk. However, options can expire worthless, so choosing the right strike price and expiration date is crucial.


What is Options - DNT?

  1. Options DNT is structured with two price levels (upper and lower), and both of these levels are set above and below the current market price of the crypto asset.

  2. The primary condition for the option to pay out is that the price of the asset must never touch or breach either of these two levels during the option's lifetime. This means the price must remain between the two levels for the entire duration of the option.

  3. If the price of the cryptocurrency stays within the two specified boundaries (i.e., it does not "touch" either level), the holder of the option receives a predetermined payout at expiration. If the price hits or exceeds one of the levels, the option expires worthless.

  4. DNT options are typically used by traders who believe the price of the cryptocurrency will remain stable within a certain range and will not experience extreme volatility that would push it past the upper or lower barriers.


What is the difference between Classic Options and DNT Options?

The main difference between classic options and Double No Touch (DNT) options lies in their structure, payout conditions, and how they are used in trading. Let’s break it down:

1. Basic Structure:

  • Classic Options (Call and Put options):

    • Call: Buy asset at a set price.

    • Put: Sell asset at a set price.

    • These are based on the price moving up or down.

  • Double No Touch Options:

    • Involves two price barriers.

    • Pays out if the price stays within these levels without touching either one.

2. Payout Conditions:

  • Classic Options:

    • Call: Payout if the price is higher than the strike price.

    • Put: Payout if the price is lower than the strike price.

    • Expires worthless if out of the money (price does not reach the strike price for calls or puts).

  • Double No Touch Options:

    • Payout if the price stays between the two barriers.

    • Expires worthless if the price breaches either barrier.

3. Risk and Strategy:

  • Classic Options:

    • Bet on price rising (Call) or falling (Put).

    • Clear profit potential based on price movement

  • Double No Touch Options:

    • Bet on price staying stable within a range.

    • Higher risk if price touches either barrier.

4. Market Conditions for Use:

  • Classic Options:

    • Best for volatile markets with expected price movement.

  • Double No Touch Options:

    • Best used in low-volatility or sideways market.

5. Premiums and Payouts:

  • Classic Options:

    • Premium based on volatility and time until expiry.

    • Potential for large payouts if the price moves significantly

  • Double No Touch Options:

    • Higher premium due to the added risk.

    • Fixed payout if price stays within the range.

Summary of Differences:

Feature
Classic Options
Double No Touch Options

Type of Option

Simple, directional (Call/Put)

Two barriers (upper and lower)

Payout Condition

Profit if price is above/below strike price

Profit if price does not touch or breach either barrier level

Market Expectation

Expect price to rise (Call) or fall (Put)

Expect price to stay within a range (low volatility)

Risk

Limited to the premium paid

High risk if price touches/breaches barriers

Use Case

Common in volatile markets

Common in stable or range-bound markets

Premium

Depends on volatility and time to expiry

Higher premiums due to higher risk

In short, classic options are simpler and are based on the price moving in a specific direction, while Double No Touch options are more complex and require the price to remain within a specific range without touching the predefined barriers.

💱
📈
🧐
How do I use my Options Voucher?
What is Options - Classic?
What is Options - DNT?
What is the difference between Classic Options and DNT Options?