Documentation 2
  • DBOE
    • 🔑What is DBOE?
      • Why Derivatives?
      • What Makes Us Different?
      • Why will retail and professionals love DBOE?
      • Why did we choose a centralised order book as opposed to an Automated Market Maker?
      • DBOE Tokenomics
    • DBOE Options
      • DBOE Options Basics
    • Introduction To Derivatives
      • Options Basics
      • What Is The Difference Between European and American Style Options?
      • The Benefits of Derivatives
    • ⁉️On-chain CLOB FAQs
      • 1. What are the current fixed spreads?
      • 2. What is the methodology to calculate the mark prices?
      • 3. Can we have some illustrations on the mark price methodology?
      • 4. Noticed the first spread level is 0, how does it help?
      • 5. How is the price formation?
      • 6. Any constraints when submitting an order?
      • 7. How to query all the configurations of on-chain CLOB?
      • 8. Would LMT order trigger matching?
      • 9. What would happen if a MKT order is submitted?
      • 10. How is the transaction & clearing fee calculated?
      • 11. Who is going to pay for the gas fee when submitting orders?
      • 12. Any suggestion to adjust gas fee when the network is unable to predict it?
      • 13. What is the rough estimation of gas fee so far?
    • 📁General Blog Posts
      • Crypto Basics
        • What is Blockchain?
        • What are Cryptocurrencies?
        • What is a Decentralised Network?
        • What is a Centralised Market?
        • What is Proof of Stake?
        • What is a Smart Contract?
        • What is Gas?
      • What is Custody?
      • What is a DEX?
    • ⁉️General FAQs
      • 1. What Does DBOE Stand For?
      • 2. What Are The Risks Of Using DBOE?
      • 3. Is DBOE Available on Mobile?
      • 4. Is DBOE Beginner Friendly?
      • 5. Does DBOE Have A Token?
      • 6. Are The DBOE Core Contributors?
      • 7. What is the max loss for DBOE Option Sellers?
      • 8. What is the max loss for DBOE Option Buyers?
      • 12. What are order types currently supported by DBOE?
      • 13. Does DBOE support “Fill Or Kill” order attribute?
      • 14. How to amend an order?
      • 15. What is DBOE daily maintenance time window?
      • 16. How is the trade lifecycle?
      • 17. Do I need to register and deposit on DBOE?
      • 18. How is DBOE Options different from Futures, Spot and Options?
      • 19. What is DBOE's expiration time and transaction time?
      • 20. Can I view options contracts on my wallet?
      • 21. Why say DBOE Options helps protect Portfolio Investment?
      • Other questions?
    • 📗DBOE Tutorial
      • DBOE (DeFi Board Options Exchange) User's Guide for Beginners - Desktop
      • DBOE (DeFi Board Options Exchange) User's Guide for Beginners - Mobile
      • Instructions for creating a Metamask wallet
      • Terminology and Indicators in Derivatives
        • Orderbook
        • AMM
        • Options
        • The Greeks
        • Options Pricing
        • Options Strategies
      • How to use Trading View to analyze Crypto
      • How to read 3D Volatility Surface
      • How to calculate Premium with Black Scholes
      • Instructions for trading on DBOE
      • Instructions for using Order Preview, Options Chain, Order book
    • Privacy Policy
      • What Personal Information do we collect about you, why and on which legal basis?
      • Do we share your Personal Information?
      • Do we transfer your Personal Information?
      • For how long do we keep your Personal Information?
      • How do we secure your Personal Information?
      • Your rights
      • Changes to the Privacy Policy
      • Contact us
    • Contract Specifications
    • Term of use
      • 1. Definitions
      • 2. Right to Use the Site
      • 3. Proprietary Rights
      • 4. Additional Rights
      • 5. Prohibited Uses*
      • 6. Non-Custodial and No Fiduciary Duties
      • 7. Non-Solicitation; No Investment Advice
      • 8. No Warranties
      • 9. Assumption of Risk
      • 10. Third-Party Resources and Promotions
      • 11. Release of Claims
      • 12. Indemnity
      • 13. Limitation of Liability
      • 14. Resolution of Disputes
      • 15. Class Action and Jury Trial Waiver
      • 16. Governing Law
      • 17. Language and Contact details
      • 18. Entire Agreement
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  • The cryptocurrency market has been witnessing 3 strong growth waves:
  • So what is the difference between spot, futures, and options trading - especially DBOE options trading in the crypto market?
  1. DBOE
  2. General FAQs

18. How is DBOE Options different from Futures, Spot and Options?

Previous17. Do I need to register and deposit on DBOE?Next19. What is DBOE's expiration time and transaction time?

Last updated 1 year ago

The cryptocurrency market has been witnessing 3 strong growth waves:

  • The first wave was the spot market.

  • The second wave is the futures market.

  • The third wave - also the current growth wave with great growth potential: the options market.

So what is the difference between spot, futures, and options trading - especially DBOE options trading in the crypto market?

A spot transaction is when a contract between a buyer and a seller is executed immediately at the time of the transaction at a specified price and quantity.

A futures contract is one of four types of derivatives contracts (including futures, options, forwards, and swaps) that agree to buy or sell cryptocurrencies at a certain price at a particular time in the future. The parties are required to execute the transaction according to the signed contract no matter how much the price of the crypto currency changes on the expiration date.

An options contract gives the buyer the right to exercise the contract on the expiration date or not (while the seller is still obligated to perform the contract). Because traditional options in the market still have the ability to cause sellers to suffer infinite losses, leading to "burning out" of their accounts, many exchanges currently only allow users to buy options, not sell them. But this problem is still not completely optimal for investment funds.

The DBOE options contract is a European-style options contract, in which to manage risk, investors will choose "price volatility ranges". As a result, there will be no big loss when in the seller position. DBOE provides full rights (Long Call, Long Put, Short Call, Short Put), helping both individual investors and investment funds to maximize profits and minimize risk.

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