Key takeaways
- A target at expiry and a target touched before expiry are different conditions.
- Direction trades are available where listed; range trades are planned.
- Match the payoff and timing first, then compare costs and available contracts.
What are you trying to express?
| Your view | What the trade must measure | Skew fit |
|---|---|---|
| A price will finish above or below a level | The settlement price against a strike at expiry | Available where listed, subject to current contracts |
| A price will finish inside or outside a band | The settlement price against two boundaries | Planned; not currently available |
| A price will touch a level before a deadline | The entire relevant path before expiry | Not established by the current above/below markets |
| I want to own the asset indefinitely | Ownership without a contract expiry | An expiry-based outcome trade does not meet this goal |
| I want gains to grow with the size of a rally | A payoff that continues changing with price | A fixed $1 winning payout does not provide this exposure |
A bullish or bearish view needs a level and a time
“I think ETH will rally” leaves several decisions open. Do you expect it to finish above a particular level next week? Do you want exposure to every further dollar of appreciation? Or do you care only that it reaches a target at some point? Those are different payoffs.
A Skew above-strike outcome can fit the first formulation when a suitable contract is listed. The opposing side can express that the computed price will not be above the strike. Check how equality is assigned rather than assuming that the word “below” always means strictly less than.
A sideways view or a large move in either direction
An inside-range expiry condition asks whether the final settlement price is within two boundaries. An outside-range condition asks whether it ends beyond them. Skew plans to add inside/outside range trades; they are not currently available.
Finishing outside a range is not the same as experiencing high volatility along the way. A price can move sharply and return inside the range before expiry. Boundary, settlement and void rules must be checked on the specific contract once it is available.
Five questions to ask before choosing a contract
- Which asset and which reference price do I mean?
- Does the condition apply at expiry, or at any time before it?
- Which level, range and exact expiry match my view?
- Do I want a fixed payoff, continuing price exposure or ownership?
- Can I accept the full purchase loss, the costs and the possibility that I cannot exit early?
Sources & method
The map matches plain-language views to contract conditions. Current and planned capabilities are separated using the product team's inventory. It does not rank products by expected returns or assume suitability for an individual trader.
Examples explain mechanics, not expected returns. Trading can result in loss. Read the trading risks.
Check the actual market.
Review the available strikes, expiries and contract rules in Skew. Access depends on eligibility and location.
Open Skew