Simple Option is a trading product that allows you to use leverage to enhance potential returns while avoiding the risk of liquidation. It's useful when you expect the market to rise or fall significantly but are concerned about sudden reversals that may cause large losses or forced liquidation. When you trade with Simple Option, you're actually buying an option contract.
Q: Why doesn't Simple Option have a risk of liquidation?
Checklist
- What is Simple Option？
- Frequently Asked Questions
- If exercising the option is unfavorable, you can simply choose not to exercise it.
- What is the target price?
- What is the strike price?
- What is the expiry date?
- How is profit and loss (PnL) determined?
- How are Simple Options settled?
Notes
A: When you buy a Simple Option, you're purchasing an option contract. An option is a right that can be exercised on its expiry date:
If exercising the option is favorable at expiry, you'll receive the corresponding profit, while the seller covers the expense.
Your maximum risk is limited to the premium you paid to purchase the option contract. Regardless of market movements, you can't be liquidated before expiry, and no additional margin is required during the holding period.
Q: Why can't I close my Simple Option position early sometimes?
Details follow the official OKX help article; this page is a learning checklist, not an official mirror.
