How to Use Option Chain Data for Crypto Options Trading on FIU-Registered Delta Exchange India

If you’re not big on owning cryptocurrencies but still want to trade them, crypto options and futures are your go-to. But in India, finding a good platform for trading derivatives can be a rough road, and that’s where Delta Exchange India comes in – we’ve got you covered. 

Delta Exchange India lets you trade futures and options for both Bitcoin and Ethereum tailored specifically for Indian traders. Plus, they’ve gone the extra mile by getting registered with India’s FIU (Financial Intelligence Unit), so you know they’re playing by the rules and looking out for your safety.

Options trading and cryptocurrencies 

Options are super useful tools for inexpensively managing risk and profiting from market volatility. Since an option’s price (premium) is small but directly tied to the asset’s volatility, traders can take larger positions and diversify their strategies without risking too much. So crypto options are ideal for volatile markets like cryptocurrencies. Moreover, crypto options are suitable for those who prefer to avoid holding cryptocurrencies after spot trading, as settlements can be made in fiat currency without having to deal with actual crypto.

Options let investors bet on whether a crypto’s price will go up or down. If they think it’ll go up, they can buy a call option and make money if the price goes above a certain level. If they think it’ll go down, they can buy a put option and make money if the price falls below a certain level. Either way, options act like insurance for their investments, protecting them from unpredictable market changes.

Delta is leading the crypto option moment

Delta Exchange India stands out as a leader in the crypto options movement, diverging from the traditional focus on futures contracts. The platform offers Futures & Options trading with a crypto twist, all presented through a cutting-edge interface, and the benefits include, 

• Start small, gain big: Starting with smaller lot sizes, such as BTC contracts at approximately Rs 5000 and ETH contracts at around Rs 2500, makes it more accessible for beginners to enter the market and gain trading experience.
• Delta Exchange India allows for trading 24/7/365, mirroring the perpetual nature of crypto markets that never close.
• It includes a variety of daily, weekly, and monthly expiries, providing traders with an array of opportunities to engage in trading activities regularly.
• The platform employs a smart margining scheme that optimizes your trading capacity by allowing you to utilize less capital while still accessing a broader range of trading opportunities.

How to use option chain data for future trading on Delta India

Here is the step-by-step breakdown

1. Log in or sign up on the Delta Exchange India platform.
Delta Exchange India account sign-up

2. Accessing the Option Chain

• Click on the “Options” tab on the Delta Exchange platform.

Options on the Delta Exchange India Platform 

3. Available Expiries

• Note the available expiries for Bitcoin and Ethereum options: daily, weekly, and monthly.

Expiries for BTC and ETH

4. Selecting an Expiry

• Choose the desired expiry, for instance, the daily expiry in May. 

5. Understanding Option Chain Columns

Let’s take a look at the columns in the option chain:

• Strike: Represents the strike price of the options.
• Open Interest: Denotes the open contracts of options being bought and sold.
• Bid Quantity: Represents the amount of options available at the bid price.
• Bid Price: The best bid is available with the corresponding bid quantity.
• Ask Price: The best ask is available with the corresponding ask quantity.
• Mark Price: Calculated fair value of each option.
• Delta: Represents the change in price of the option for every $1 move in the underlying asset.
• Volume: Past 24-hour volume of each contract.

6. Customization Options:

• Flexibility in choosing which features to display in the chart.

Customization features 

7. Expanding the Option Chain:

• You can expand the option chain for a bigger view, showing all options Greeks (delta, gamma, vega, theta, etc.).

Options Greeks

8. Viewing Positions:

• Positions taken by the trader, including bought and sold options at various strike prices.

9. Analyzing Open Interest:

• High open interest indicates significant buy and sell positions on specific options, suggesting potential resistance or support levels.

10. Utilizing Option Greeks:

• Use option Greeks (delta, gamma, theta, etc.) to predict market movements and manage portfolio risk.
• Delta is used as a metric for the probability of a strike ending up in the money.
• Calculate net theta and net Vega, and adjust positions to be delta-neutral or close to desired delta values.

11. Charts

• Utilize graphs and charts to analyze option chain data, enabling the identification of market trends and patterns. 

Charts to analyze option chain data 

Deposits and Withdrawals on Delta India

As stated, you can easily deposit INR from your bank account to fund your trading account on Delta Exchange India without the need for conversions or direct connection with crypto. 

Here’s how:

Deposits:

• Log in to your Delta Exchange India account.
• Navigate to the ‘Add funds’ section.
• Add your bank account details in the ‘Add funds’ section. 
• Once it gets whitelisted by the Delta Exchange India team, you can transfer funds to Delta India’s account.

Withdrawals:

• Log in to your Delta Exchange India account and go to the ‘Withdrawal’ section.
• Specify withdrawal amount.
• Add bank account details and select the correct withdrawal option.
• Confirm withdrawal by transferring the chosen amount.

With these steps, managing funds on Delta Exchange India is efficient and hassle-free.

Our Take

Delta Exchange India has a custom crypto platform for Indians, sidestepping taxes and regulations. They’re delivering on their promises, shaping a promising future for crypto in India.

Visit Delta Exchange India’s website to stay in the loop for all the latest updates, and follow us on X and Instagram. Don’t miss out—download the app now from the Google Play Store.