An option is a contact between a buyer and a seller where the buyer of the contract has the right, but not the obligation, to transact in bitcoin at a specific strike price on a specific date (expiration).
The contract size on LedgerX is 0.01 Bitcoin. 100 Mini Contracts = 1 Bitcoin
Terms to Know
Strike Price: the price at which the options contract can be exercised.
If you’re buying a call, your call is profitable if the value of bitcoin goes above the strike price (plus whatever premium you paid). If the value of bitcoin stays below your strike price, your call option contract will expire worthless. The reverse is true for put options. See Call Options and Put Options for more details.
Expiration Date: the last date on which an option can be traded. The expiration date on LedgerX is 4:00pm EST. LedgerX contracts are European-style meaning they can only be exercised on the date of expiration.