How to trade crypto options on Bybit

Crypto options are contracts that give you the right, but not the obligation, to buy or sell a digital asset at a set price on a predefined expiration date. Whether you’re exploring cryptocurrency options trading for the first time or want to start placing trades, you need a clear picture of how the process works from beginning to end.

For Bybit crypto options trading, this process covers contract selection, order execution and position management. In this guide, we provide you a practical route through each of these stages, so you can move from choosing a contract to managing the result with confidence.

Key takeaways:

• As an options buyer, you pay a premium to open a contract. Your maximum loss is generally limited to the premium paid plus any applicable fees.

• Bybit provides two main trading interfaces for options trading: Easy Options and the full Options Chain.

• An unfilled order you submit is distinct from an executed position you hold.

Crypto options explained: calls, puts and premium

An option is aderivative contract that gives you the right, but not the obligation, to buy or sell an asset at a set price on a set date. The fee you pay for that right is called the premium.

Two main types of options cover the two possible price directions. Acall option gives you the right to buy, while aput option gives you the right to sell. You buy a call when you expect the price to rise, and a put when you anticipate it to fall.