To further enhance our options trading ecosystem and empower users with diversified investment strategies, Gate.io fully supports the Selling Options feature on April 2, 2025 (UTC) . With this update, investors can now take on the role of an options seller, capturing premium income while managing risk hedging and yield enhancement opportunities.

Feature Overview

1. Trading Types

• Sell to Open: Initiate a new options position as a seller.
• Buy to Close: Close an existing short options position.

2. Supported Contracts

This feature applies to all options contracts currently available on Gate.io.

Core Value Proposition

1. Selling to Open

By executing a Sell to Open order, users can sell Call or Put options to the market and immediately collect the premium paid by the buyer. As an option seller, the profit potential depends on whether the contract is exercised and the direction of market movements, with a corresponding obligation to fulfill the contract terms.

2. Comprehensive Strategy Coverage

• Profiting from Range-Bound Markets: When expecting a period of low volatility, selling options allows traders to earn from time decay.
• Volatility Arbitrage Opportunities: When implied volatility is higher than actual volatility, selling options provides a way to bet on volatility reversion.
• Enhanced Yield on Holdings: When holding spot assets (e.g., BTC/ETH), selling covered call options can improve capital efficiency.

How to Use the Feature

1. Access the trading page : Navigate to Gate.io WEB page, Futures] → [[Options].

2. Select contract parameters : Choose the underlying asset, expiration date (daily/weekly/monthly/quarterly), and option type (call/put).

3. Place an order : Enter the order price and quantity. The system will automatically calculate margin requirements and premium income. Confirm and click “Sell (Short)” to submit the order. ( Note: Selling options requires margin collateral. Closing a position will release margins and settle profits/losses. Click here to learn more about margin requirements for selling options )

Risk Warnings

• Potential for Unlimited Losses : If the underlying price surges after selling call options or crashes after selling put options, losses may exceed the initial margin deposit.
• Liquidation Mechanism : If the margin risk ratio reaches 100%, the system will automatically liquidate positions. Please monitor your risk exposure closely. For more information, please refer to About Options Liquidation .
• Liquidity Risks : In extreme market conditions, delays in closing positions may result in increased losses.

Please ensure you fully understand the obligations of an option seller, manage your positions prudently, and trade cautiously.

For more information on Gate.io Options, please refer to the Gate.io Options Trading Guide .

Gate.io Team
April 2, 2025

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