What is NFT option
Last updated
Last updated
The term option refers to a financial instrument that is based on the value of the underlying NFT. An options contract offers the buyer the opportunity to buy or sell the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they decide against it.
Options are versatile financial products. These contracts involve a buyer and seller, where the buyer pays a premium for the rights granted by the contract.
An option that conveys to the holder the right to buy at a specified price is referred to as a CALL option, while one that conveys the right to sell at a specified price is known as a PUT option.
A call option would usually be exercised only when the strike price is below the market value of the underlying asset. In contrast, a put option would usually be exercised only when the strike price is above the market value.
There are three main parts of a Doubleweb3 NFT option contract:
Premium The cost that buyer pays the seller for the right to buy or sell the NFT.
Strike price It is a fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying NFT.
Duration The time frame to exercise the option contract. We offer contracts for 3 days, 7 days and 30 days.
decentralized NFT option trading platform offers American options; it can be exercised at any time between the date of purchase and the expiration date.
