Cryptocurrency Trading Pair Rules

Crypto Options Contract Rules

  1. What Are Options?
  2. Option Contract Type
  3. Crypto Option Contract Description

Matching Rules

Cryptocurrency Trading Pair Rules

Instrument Price Multiple Tick size Minimum Order Quantity Maximum Order Quantity Price Range Unilateral Trading Fee
BTC/USDT 0.001 0.1 USDT 1 1000 Last Price * (1 ± 30%) 0.1%
ETH/USDT 0.01 0.01 USDT 1 1000 Last Price * (1 ± 30%) 0.1%
BXT/USDT 100 0.0001 USDT 1 1000 Last Price * (1 ± 30%) 0.1%

 

About Price Multiple:
Price Multiple is the amount of base currency we trade for 1 contract. For example, the Price Multiple of BTC/USDT is 0.001, so:
  • User actually sells/buys 0.001 BTC for every 1 BTC/USDT contract bought/sold.
  • If the user want to buy 2.1 BTC at the price of 7,000 USDT, he/she needs to place 2,100 buy orders in the BTC/USDT market
About Price Range:
Price Range is the maximum and minimum price for a new order that can be placed. It is bounded by the last price multiplied by plus or minus 30%. The maximum range then would be 130% of the last price and minimun range would be 70% of the last price. Taking BTC/USDT market as an example, if the last price was 7,000 USDT, then if you were to place an order, the maximum price that the system would allow you to input cannot exceed 9,100 USDT and cannot be lower than 4,900 USDT. This price range though wouldn't affect the orders already in the orderbook. For instance, if you placed an order and the last price was 7,000 USDT, then it suddenly grew to 10,000 USDT, the order with the price of 4,900 USDT would still go through as it was placed at the 7,000 USDT price.

Crypto Options Contract Rules

What Are Options?

Options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. BXB offers option products with underlying of cryptocurrencies.

An option contract for BTC0730P9000:

  • BTC refers to the option underlying, that is, Bitcoin;
  • 0730 refers to the expiration date;
  • P refers to this is a put, C would be a call;
  • 9000 refers to the strike price of the option, which is 9,000 USDT, this is the target price to buy/sell the underlying that the buyer locked on the maturity date.
  • The BTC option contract for the BXB platform corresponds to a contract size of 0.001 BTC.

Option Contract Type

We Take BTC Options as examples.

  1. BTC Call Option

    The BTC Call Option allows the buyer of the contract to benefit from the potential price increase in the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the settlement price of the relevant underlying instrument and the strike price on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

    For example, if you hold a BTC0730C6500 option contract, if the settlement price is 8,843 USDT (higher than 6,500 USDT) at 24:00 on July 30, which is in-the-money at the expiration date, you will receive direct income of 2.343 USDT (= (8843-6500)*0.001). If the Bitcoin price is 6,135 USDT (below6,500 USDT), then it is out-of-money, and your return is zero.

  2. BTC Put Option

    The BTC Put Option allows the buyer of the contract to benefit from the potential price decline of the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the strike price and the settlement price of the relevant underlying instrument on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

    For example, if you hold a BTC0730P9000 option contract, if the settlement price is 8,843 USDT (below 9,000 USDT) at 24:00 on July 30, which is in-the-money at the expiration date, you will receive direct income of 0.157 USDT (= (9000-8843)*0.001). If the Bitcoin price is 9,100 USDT (higher than 6,500 USDT), then it is out-of-money, and your return is zero.

Investors can only buy options, or close their option positions, but cannot short the options. Only BXB authorized market makers can short-sell. The investor's possible losses are limited to the initial investment, and the crypto option contract does not have a forced liquidation price or a margin call.

Crypto Option Contract Description

BXB's crypto option contracts are European call/put options. Currently we only offer monthly contracts which will be renewed on a monthly basis after the expiratation date.

Option UnderlyingBitcoin(BTC)
Contract Size 100:1
Each option represents the expiring purchase/sell right of 0.01 BTC
Option Type European call/put options. 
The option buyer can only exercise his rights on the expiration date (the exchange will automatically exercise for the option buyers)
Pricing Currency USDT
Delivery Method Cash Delivery in USDT
Ticksize 0.001 USDT
Minimum Order Quantity 1
Maximum Order Quantity 1000
Clearing & Settlement The clearing and settlement will be completed on the day after expiry date.
Price Range Last Price * 1$ ±  $500% for Limit Orders, 
Last Price * 1$ ±  $30% for Market Orders
Unilateral Trading Fee 0.01 USDT equivalent value of BXT. We do not accept USDT as trading fee
Position Limit 10,000 contracts
Settlement Price Settlement price would be the average of close prices of BTC/USDT listed on 4 Exchanges(BXB, Binance, Bitfinex, Huobi) on the expiration date. If any one of the price deviates from the average price for more than 0.5%, we would remove it and recalculate the price. We would quote at least 2 Exchanges' price for computation of settlement price.

Matching Rules

BXB deploy “Middle of Three” matching rule in trading. When the price of a limit buy order is greater or equal to the price of limit sell order, these two orders would be matched. The trade price would be equal to the middle of the three prices:

  1. When buy price  ≥  sell price  ≥  last price, new last price = sell price
  2. When buy price  ≥  last price  ≥  sell price, new last price = last price
  3. When last price  ≥  buy price  ≥  sell price, new last price = buy price