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Options Guide

Options Trading FAQs

2025-11-26 UTC
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1. What is options trading?

Options are financial derivatives that grant traders the right—but not the obligation—to buy (Call) or sell (Put) a cryptocurrency at a predetermined price on or before the expiration date. All Gate options are cash-settled with no physical delivery required. Traders only pay a premium to trade on market volatility, hedge risk, or execute arbitrage strategies.

2. Is there a minimum asset requirement for options trading?

Only the minimum order amount is required.

3. What is the minimum trading unit for options?

For BTC options, the minimum trading unit is 1 contract, which typically represents 0.01 BTC. Orders must be placed in whole-contract increments. The minimum contract size for other assets can be found in the trading parameters documentation.

4. Which underlying assets are supported?

Gate supports USDT-settled options on multiple major crypto assets, including BTC, ETH, SOL, DOGE, ADA, LTC, TON, XRP, BNB, HYPE, and SUI.

5. Which order types are supported?

Limit orders, advanced limit orders, IV-based orders, market orders, etc.

6. What are the requirements to enable options selling?

Your total assets must exceed 1,000 USD.

7. How do I read the name of an option?

Format: Underlying – Expiration Date – Strike Price – Type Example: BTC-250627-108000-C Underlying: BTC, Expiration: 2025/06/27, Strike price: 108,000 USDT, Type: Call option (C)

8. What is initial margin (IM)?

The minimum margin required to open a position.

9. What is maintenance margin (MM)?

The minimum margin required to keep a position from being liquidated. If the position margin falls below this threshold, the position may be liquidated.

10. What fees apply to options trading?

Gate options include three types of fees: trading fees, exercise fees, and liquidation fees.

11. Are options trading services restricted by region?

Availability depends on your jurisdiction. Please refer to the User Agreement for more details.

12. What is demo trading?

Demo trading allows users to trade options with virtual funds in a simulated environment on Gate.

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