Before You Trade
Stock options use the same account as stock trading. Once your stock account is activated, you can access the stock options trading page without opening another account.
Before trading, confirm that:
- Your stock account is active and in good standing.
- Your region and account meet the platform’s trading requirements.
- Your account has sufficient available assets.
- You understand the strike price, expiration date, contract multiplier, and expiration handling.
- You have read and understood the stock options risk disclosures.
Available underlyings and contracts are subject to the trading page.
Stock Options Trading Hours
Regular U.S. stock options trading hours are generally:
Monday–Friday, 09:30–16:00 ET
In Beijing Time, this is generally:
- U.S. Daylight Saving Time: 21:30–04:00 the next day.
- U.S. Standard Time: 22:30–05:00 the next day.
Trading hours may change due to U.S. holidays, early market closures, temporary exchange arrangements, or trading halts. Refer to the trading page and relevant market announcements.
At market open, close, or during high volatility, option spreads may widen, liquidity may decline, and quotes may change rapidly.
How to Select an Options Contract
Step 1: Select the Underlying Asset
Go to the stock options page and select the stock or ETF you want to trade.
Liquidity can vary significantly between underlyings. Before trading, review the contract’s trading volume, open interest, and bid-ask spread.
Step 2: Select Call or Put
Choose the contract type based on your market view:
- If you expect the underlying price to rise, consider a Call.
- If you expect the underlying price to fall, consider a Put.
Choosing a Call or Put only indicates direction and does not guarantee a profit.
Step 3: Select the Expiration Date
The expiration date determines how long the option remains valid.
- Shorter-dated options are generally more sensitive to time decay.
- Longer-dated options may contain more time value but usually have higher premiums.
- Contracts near expiration may experience rapid price changes or lower liquidity.
Step 4: Select the Strike Price
The strike price is the agreed price for buying or selling the underlying asset. Based on its relationship with the current underlying price, an option may be in the money, at the money, or out of the money.
Different strikes have different premiums, sensitivities, leverage, and risks. A lower premium does not mean lower risk. Deep out-of-the-money options are generally more likely to expire worthless.
Step 5: Review Contract Market Data
Before submitting an order, review:
- Last traded price.
- Best bid and ask.
- Bid-ask spread.
- Trading volume.
- Open interest.
- Implied volatility.
- Expiration date and time remaining.
- Contract multiplier.
- Whether the contract has been adjusted due to corporate actions.
A wider bid-ask spread increases the risk of slippage when using a market order.
How Is the Trading Amount Calculated?
One standard U.S. stock option contract generally represents 100 shares of the underlying asset.
The estimated premium for buying an option is:
Estimated Premium = Option Price × Contract Multiplier × Number of Contracts
Example:
- Option price: 1.50 USDT.
- Contract multiplier: 100.
- Quantity: 2 contracts.
The estimated premium is:
1.50 × 100 × 2 = 300 USDT
This calculation excludes potential trading fees. The actual amount is based on the final execution price and order record.
Following corporate actions such as stock splits, mergers, or special dividends, the contract multiplier or deliverable may no longer equal the standard 100 shares. Refer to the contract details.
How to Submit an Order
- Select the underlying asset, Call or Put, expiration date, and strike price.
- Review the contract details and live market data.
- Enter the number of contracts.
- Confirm the estimated premium, contract multiplier, and related fees.
- Read the risk disclosure and submit the order.
- Check the order status and execution result on the order page.
The platform currently supports buying stock options through market orders. Supported order types and trading directions are subject to the trading page.
What Is a Market Order?
A market order seeks to execute quickly at the best available market price.
It may increase the likelihood of execution but does not guarantee the execution price. Options markets are generally less liquid than stock markets, so:
- The final execution price may differ from the displayed price.
- One order may be filled at multiple prices.
- An order may be partially filled.
- Limited market depth may cause significant slippage.
- An order may fail if no valid quote is available.
Use market orders cautiously when liquidity is low, spreads are wide, or markets are highly volatile. Estimated amounts shown by the platform are for reference only and do not represent final execution amounts.
Possible Order Statuses
After submission, an order may show:
- Pending: Submitted and awaiting market matching.
- Partially Filled: Only part of the order was filled; the remainder is still open or has been canceled.
- Filled: The entire order was filled.
- Canceled: The order was canceled before being fully filled.
- Rejected/Failed: The order could not be submitted or filled due to insufficient balance, market closure, an unavailable contract, risk controls, or other reasons.
Exact status names are subject to the order page.
How to Manage Your Position
After execution, the stock options positions page may show:
- Underlying asset.
- Call or Put.
- Strike price and expiration date.
- Number of contracts held.
- Position cost and current price.
- Unrealized P&L.
- Contract multiplier and adjustment details.
Option prices can change rapidly. Displayed unrealized P&L does not represent final realized returns. Closing results depend on market quotes, order book depth, execution prices, and related fees.
If sell-to-close is supported, you may sell your options before expiration. A sell order is not guaranteed to fill immediately or in full. Refer to the order record for the final result.
What Happens at Expiration?
Options have defined expiration dates. After expiration, a contract may be exercised, cash-settled, or expire worthless based on its final status and platform rules.
Please note:
- Out-of-the-money options generally expire worthless.
- In-the-money options may enter the exercise or settlement process.
- Being in the money does not guarantee a profit; premiums and fees must also be included.
- Exercise methods, settlement methods, and cutoff times may vary by contract.
- The platform may impose pre-expiration trading cutoffs or risk-management rules.
Avoid waiting until the last moment to manage positions nearing expiration. Review the contract’s expiration and settlement details before trading.
Important Risk Disclosure
Stock options involve high risk. Trading may involve price volatility, time decay, changes in implied volatility, limited liquidity, execution slippage, contract expiration, and adjustments following corporate actions.
Trade cautiously based on your investment experience, risk tolerance, and financial situation. This content does not constitute investment advice or any guarantee of returns.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
