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Capitalize on Bitcoin and Ethereum price action with Nadex UpDown Options, hedge against price declines, and gain 1:1 price movements without needing to own the coins.
Key benefits
Hedge against price declines in Bitcoin and Ethereum using UpDown Options to short the underlying market.
Capture price action and gain 1:1 exposure to the token without needing to own the asset.
UpDown Options have a clearly defined profit target and stop loss level built into the contract. You always know your max profit and loss before entering a trade.
How to trade crypto UpDown Options
Use our interactive, real-world demonstration below to learn how to trade crypto UpDown Option contracts.
The current price of Bitcoin is $20,000.
There will always be 4 UpDown Options to choose from. No matter if you’re bullish or bearish you can select an UpDown Option with the optimal risk/reward ratio.
For this example we’ll look at the highest and lowest UpDown Option levels.
Do you think the price of Bitcoin will go up or down? Choose your option below.
You’ve chosen to BUY.
Bitcoin UpDown Options have a $500 range with a predefined floor and ceiling level. When the price goes higher or lower than these levels, the contract is automatically closed out for a max profit or max loss.
By choosing to BUY, you’re predicting that the current price of Bitcoin will rise.
You’ll pay $100.
Since you are bullish and believe the market will rise, you pay the difference between the current market price and the floor.
Bitcoin is rising!
You can now choose to take profit on your position or hold to see if Bitcoin’s price hits the ceiling.
If you decide to take profit now and close your position early, you profit $200.
If you continue to hold until expiration, you will:
- Profit $400 if the price hits the ceiling of $20,400.
- Lose $100 if the price hits the floor of $19,900.
- Receive the $200 if you decide to exit right now.
You’ve closed your position early.
Congratulations!
You correctly predicted the price of Bitcoin would rise and closed your position to capture a profit.
In this scenario, you made a profit of $200.
You’ve opted to hold.
Congratulations!
You correctly predicted the price of Bitcoin would rise and it hit the ceiling of $20,400.
You’ve chosen to SELL.
Bitcoin UpDown Options have a $500 range with a predefined floor and ceiling level. When the price goes higher or lower than these levels, the contract is automatically closed out for a max profit or max loss.
By choosing to SELL, you’re predicting that the current price of Bitcoin will fall.
You’ll pay $100.
Since you are bearish and believe the market will fall, you pay the difference between the current market price and the ceiling.
Bitcoin is falling!
You can now choose to take profit on your position or hold to see if the Bitcoin’s price hits the floor.
If you decide to take profit now and close your position early, you profit $200.
If you continue to hold until expiration, you will:
- Profit $400 if the price hits the floor of $19,600.
- Lose $100 if the price hits the ceiling of $20,100.
- Receive the difference between $20,000 and the closing price if the contract is not knocked-out early.
You’ve closed your position early.
Congratulations!
You correctly predicted the price of Bitcoin would fall and closed your position to capture a profit.
In this scenario, you made a profit of $200.
You’ve opted to hold.
Congratulations!
You correctly predicted the price of Bitcoin would fall and it hit the floor of $19,600.
Crypto UpDown Option contract specifications
| Bitcoin | Ethereum | |
|---|---|---|
| Tick value | $1 | $1 |
| Minimum tick size | 1 | 1 |
| Number of contracts | 4 | 4 |
| Range | $500 | $250 |
| Expiration | Weekly or when floor/ceiling touched | Weekly or when floor/ceiling touched |
| Position limit | 10 | 10 |
| Underlying market | Nadex BTC Index | Nadex ETH Index |
| Settlement | Cash-settled | Cash-settled |
| Trading hours | 23/5 (Sun-Fri)* | 23/5 (Sun-Fri)* |
*Nadex is open for trading from 6pm ET Sunday through 4:15 pm ET Friday, excluding end-of-day processing hours which occur between 5pm and 6pm ET on Monday through Thursday. See full details for trading hours and holiday schedules.
