Trading Binary Options
Binary options are contracts that pay out a fixed amount if a condition is met at expiry, or nothing if it isn't. On Gambit, you trade binary options on crypto prices.
How Binary Options Work
A binary option contract is tied to a specific question: Will the price of a cryptocurrency be above a certain strike price at a certain time?
- If YES: The contract settles at $1 per contract
- If NO: The contract settles at $0 per contract
The price of a binary option contract ranges from $0.01 to $0.99, reflecting the market's estimated probability that the condition will be met.
A BTC binary option with a strike price of $60,000 expiring in 2 hours is priced at $0.65. This means the market estimates a ~65% chance that BTC will be above $60,000 at expiry. If you buy 100 contracts at $0.65 and BTC is above $60,000 at expiry, you receive $100 (100 x $1.00). Your profit is $100 - $65 = $35 (minus fees).
You cannot place a trade an hour before expiry.
Selecting an Instrument
To trade, you first need to select a specific binary option contract. This involves three choices:
1. Choose a Cryptocurrency
Select from available cryptocurrencies (BTC, ETH, SOL, etc.) using the dropdown at the top of the trading page.
Screenshot of the crypto selector dropdown.
2. Choose an Expiry Date
Select when the contract expires. Available expiry dates are shown in a paginated grid below the crypto selector.
Screenshot of the expiry date selector.
3. Choose a Strike Price
Select the price level for the binary condition. The options chain shows all available strike prices with their current bid/ask prices.
Screenshot of the options chain showing instruments with strike prices.
4. Click to Trade
Click on any instrument in the options chain to load it into the order form. You can also click on a price in the order book to pre-fill the limit price.
The Trading Interface
The main trading page is divided into several sections:
Annotated screenshot of the full trading page.
| Section | Purpose |
|---|---|
| Price Chart | Candlestick chart showing the underlying crypto's price history |
| Order Book | Real-time bid/ask levels for the selected instrument |
| Options Chain | Table of all available instruments at different strikes |
| Order Form | Where you configure and place your trades |
| Account Overview | Your Binary Wallet balances and position counts |
| Tabs Panel | Open orders, positions, trade history, and more |
Placing a Trade
Select Your Order Type
Choose between:
- Market Limit - Executes immediately at the best available price (default)
- Limit - Executes only at your specified price or better
See Understanding Orders for a detailed comparison.
Set the Limit Price (Limit Orders Only)
If you chose a Limit order, enter your desired price between $0.01 and $0.9999.
Click on a price level in the order book to auto-fill this field.
Enter Your Quantity
Enter the number of contracts you want to buy or sell. Minimum quantity is 1.
For Limit orders, you can also use the percentage slider to set your quantity as a percentage of your available balance. The slider calculates how many contracts you can afford based on your limit price and fees.
The slider is one-way. Moving the slider sets the quantity, but manually typing a quantity resets the slider to prevent misleading percentages.
Configure Time in Force
Choose how long your order stays active:
| Option | Meaning |
|---|---|
| GTC (Good Till Cancel) | Stays open until filled or you cancel it |
| IOC (Immediate or Cancel) | Fills what it can now, cancels the rest |
| FOK (Fill or Kill) | Must fill completely right now, or cancel entirely |
Set Order Options (Optional)
| Option | When to Use |
|---|---|
| Reduce Only | Only reduces your existing position. Won't open a new one. |
| Post Only | Only for Limit orders. Guarantees your order adds liquidity (pays maker fee instead of taker fee). Rejected if it would execute immediately. |
Review and Submit
The Buy and Sell buttons show the estimated total cost and fee:
Close-up of the Buy/Sell buttons showing estimated cost and fee.
- Buy (green button): You're buying contracts. For an Up contract, this means you expect the price to be above the strike at expiry. For a Down contract, this means you expect the price to be below the strike.
- Sell (red button): You're selling contracts. This could mean closing an existing position, or opening a short position against the contract's direction.
Click the button to submit your order.
After You Place a Trade
- A success notification appears confirming your order was sent
- The order appears in your Open Orders tab (for limit orders) or Trade History (for filled orders)
- Your Available and Reserved balances update immediately
- For limit orders, the order sits on the order book until filled, cancelled, or expired
See Managing Positions for what happens next.