Introducing Options on XRP Futures and Micro XRP Futures
Options on XRP futures and Micro XRP futures provide a regulated and transparent way to gain exposure to one of the most popular digital assets in the world, enhancing the tools available for market participants looking for ways to manage risk with flexible trading strategies.
XRP has grown to become one of the top digital assets by market cap over the years. This growing interest underscores the need for advanced trading strategies and robust risk management tools.
The minimum price fluctuation for these options is 0.0005 per XRP, equivalent to $25 per contract, and they are quoted in U.S. dollars and cents per XRP. The minimum price fluctuation for options on Micro XRP futures is $0.0005 per XRP, which is equal to $1.25 per contract.
Unlike unregulated options offered by other platforms, these contracts are financially delivered into the underlying futures, ensuring a seamless transition and flexible portfolio management.
Additionally, options on XRP futures offer market participants a capital-efficient approach to optimize risk exposure and manage portfolios with greater flexibility.
Flexible exposure and execution
These options are offered across a wide range of expiries and contract sizes, from short-dated Weekly options to Micro contracts, allowing for precisely scaled exposure. The listing cycle includes Mon-Fri Weekly options, monthly and quarterly contracts, giving market participants the flexibility to manage their positions effectively.
Trading example
Options on XRP futures expire the same day as their underlying futures contract. At expiration, the options deliver the futures contract that then instantaneously expires into cash.
These options are European style.
Let’s consider an example. Assume that on the final trade date, the financially settled price for the Micro XRP futures contract prints at $2.30.
A monthly call option struck at $2.20 will also expire on the same day. Because it expires in-the-money, the call will be exercised.
The profit would be $0.10 per XRP.
After a $0.02 premium, the net profit is $0.08 per XRP. This results in a total gain of $200.
Trading hours and conclusion
Options on XRP and Micro XRP futures are available on the Globex electronic trading platform or via block trades. Globex operates from Sunday to Friday, 5:00 p.m. to 4:00 p.m. Central Time (CT), with a 60-minute break each day. ClearPort is also available for trading, with hours from Sunday 5:00 p.m. to Friday 5:45 p.m. CT.
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