Learn about BTC Range Binary Options

The MIAXdx BTC Range Binary Option (“BTCRB”) is an hourly-expiring, fully-collateralized, cash-settled binary option on the price of Bitcoin (“BTC”) listed for trading at mutually exclusive ranges. A binary option is a type of options contract in which the payout depends on the outcome of a yes/no proposition. On MIAXdx, traders can predict whether the price of BTC, as reflected by a particular index, will be within a defined range of prices at the time of the binary option expiration. Traders receive a payout at settlement based on the positions they’ve entered and the determination of the winning range. If traders enter into multiple positions in ranges in the same expiration, their portfolio may qualify for collateral netting benefits and some of their collateral and payouts could be returned to them prior to settlement. BTC Range Binary Options are cash-settled at expiration and do not allow traders to take a position in the underlying commodity. 

"Yes" or "No" Positions

Traders decide what they believe will be the most likely price of BTC at expiration, and purchase a “Yes” position in that range. If the Settlement Price falls within a range at expiration, then all “Yes” positions for that Contract range will receive a payout, while the “No” positions will receive no payment. Participants who established a “No” position in the non-winning ranges will also receive a payout, while Participants who established “Yes” positions in the non-winning ranges receive no payment. In order for a range to be the winning range in an expiration, the index price of BTC at expiration must be greater than or equal to the lower bound of the range and less than the upper bound of the range.

Will the price of Bitcoin settle between $97,000 and $98,000 at Feb 21, 2025 1:00PM? If you think it will be, then you buy. If you think it won’t be, then you sell. 

Note: If you think the price of BTC will be $98,000, in order to be "in" the winning range, you should select the $98k-$99k range. This is because the range includes the lower bound of $98,000, but does not include the upper bound of $99,000.

Learn how to trade BTC Range Binary Options using our Trade Simulator, an interactive page to help you understand how settlement outcomes work. Here you can learn what your Max Loss potential is for different portfolios and see what your Loss or Gain would be if the index price settled in each range: https://app.miaxdx.com/trade-simulator  

Cash-settled contracts means that all contracts are settled in cash rather than by the physical delivery of the underlying asset. It will be delivered upon expiration in exchange for USD. All MIAXdx contracts are cash-settled. 

U.S. Dollars (USD) is the only collateral accepted for trading MIAXdx BTC Range Binary Option Contracts. Cryptocurrency and other non-USD assets are not accepted as collateral for trading. With a small contract notional size of $10, you can start trading MIAXdx BTC Range Binary Options with only a few dollars. Note that you pay trading fees and also must collateralize the risk of your positions.

To start trading BTC Range Binaries, deposit USD into your account.

Contracts on MIAXdx trade between between $0.01 and $9.99. Participants with “Yes” or “long” positions in a range receive the full notional amount of the contract ($10) at settlement if that range is the winning range and Participants with “No” or “short” positions for that range receive no payment. For non-winning ranges, “No” or “short” positions receive a payment, while the “Yes” or “long” positions will receive no payment.

See our fee schedule here. 

View our contract specs and product details here. 

To place a trade on the MIAXdx dashboard: 

1. 1. Select the expiry time and then the range you want to trade, toggle to yes/buy or no/ sell button to determine if you’re going long or short on the range: Example of buying a “Yes” contract for the $88,000 - $89,000 range.
   2. To place an order, enter the limit price and number of contracts, then click on the “Place Order” button:
   3. If the order is filled, you will see it under Open Positions. If the order doesn’t immediately fill, or doesn’t immediately fill in full, it’s then an open order and you will see it under the open orders tab and can view it under the Order Book. 
   4. You can view the Trade Blotter, Open Positions, and Open Orders at the bottom of the Dashboard. Here, you can close out positions or cancel open orders. Note: You can also view your Trade and Position History under the Balances and History tab at https://app.miaxdx.com/balances-history/trades

To close out a position, hover to the open positions tab > click ‘close position’ and then enter in the limit price on the order form. 

Note: If you hold a single open position in an expiration, then at settlement you will generally either receive a payout of the full notional amount of the BTC Range Binary Option ($10) or no payment. If you enter into multiple positions in ranges in the same expiration, then your portfolio may qualify for collateral netting benefits and some of your collateral and payouts could be returned prior to settlement.

Example 1. Settlement Price = $67,000 

• Annie buys a “Yes” contract for the $65,000 - $70,000 range.
• She pays $4 for the contract.
• Since $67,000 falls within this range, Annie wins and receives $10.
• Her profit is $6 ($10 payout - $4 cost).

Example 2. Settlement Price = $63,400

• Annie buys a “Yes” Contract for the $60,000 - $65,000 range.
• She pays $2 for the contract.
• Since $63,400 falls within this range, Annie wins and receives $10.
• Her profit is $8 ($10 payout - $2 cost).

Example 3. Settlement price = $71,000

• Annie buys a “Yes” Contract for the $65,000- $70,000 range.
• She pays $4 for the contract.
• Since the $71,000 is outside this range, Annie loses and receives no payment at settlement.
• Her loss is $4 (the cost of the contract).

• Annie believes Bitcoin will not settle in the $65,000 - $70,000 range, so she buys a “No” contract for this range.
• The trade price in this range is $4, so to establish a 1-contract short position (“No” contract), Annie pays $6.
• Since the settlement price is $72,000, which is outside the $65,000 - $70,000 range, Annie wins and receives $10.
• Her profit is $4 ($10 payout - $6 cost).

In contrast to Example 1 above, if the Settlement Price was $68,000, then:

• Since $68,000 falls within the $65,000- $70,000 range, Annie would lose her “No” contract and receive no payment at settlement. 
• Her loss is $6 (the cost of the contract).