The Ultimate Guide for Huobi Derivatives Warrant Experience Vouchers
What are Huobi Derivatives Warrant Experience Vouchers?
Huobi Derivatives Warrant Experience Vouchers are premium paid options contracts that allow traders to try out Huobi Derivatives Warrant products for free and have an opportunity to profit with them.
How Can I Use my Experience Voucher?
It’s quite easy! Just follow the steps below:
1/ Go to Huobi Derivatives Warrant homepage: https://www.huobi.com/en-us/otc-option/exchange/#btc_usdt, and click on “Experience Center”, or go directly to this link: https://www.huobi.com/en-us/otc-option/exp/center
2/ Click on “Use Now” to activate your Experience Voucher under the “Experience Coupon” bar.
3/ Check the option contract’s details on the upper left corner. The picture below shows that the option’s underlying asset is BTC/USDT, the contract size is 0.005 BTC, and the option expires in 1 day. If you think the price of BTC in 1 day will be higher than the BTC price now, choose “Call” on the lower left; if you think the price will be lower, choose “Put”. Then click “Activate Coupon”.
4/ You are all set! You can check your order details under the “Order Details” bar on the Experience Center homepage. Since this is an American option voucher, you can exercise this options contract at any time before expiration by clicking “Settle”. If you choose not to, it will be automatically settled at expiration. If your view on the market is correct when the options contract is settled, you will make a profit; if not, you will earn a profit of 0. Any profit you make will be transferred to your Warrant Account.
What is an options contract, and how does it work?
An options contract is a type of financial derivatives contract that gives the option buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific time period. A Call option gives the buyer the right to buy, and a Put option gives the buyer the right to sell. When the option buyer exercises the call option – buying the underlying asset at a specified price, also called the Strike Price, the buyer can make a profit if the Settlement Price (the underlying asset’s price when the option is exercised) is greater than the Strike Price. When the option buyer exercises the put option – selling the underlying asset at the Strike Price, the buyer can make a profit if the Settlement Price is less than the Strike Price.
For Call options
If Settlement Price is greater than Strike Price:
Est. Settlement Value = Order Quantity x (Settlement Price - Strike Price)
If Settlement Price is less than or equal to Strike Price:
Est. Settlement Value = 0
For Put options
If Settlement Price is less than Strike Price:
Est. Settlement Value = Order Quantity x (Strike Price - Settlement Price)
If Settlement Price is greater than or equal to Strike Price:
Est. Settlement Value = 0
The free experience voucher shown below gives the user the right to buy or sell 0.005 BTC at the Strike Price of 65,235.51 USDT in 1 day. If the user believes the price of BTC will rise in 1 day, they should choose “Call” and activate the coupon. When it is settled, if the price of BTC rises to 66,000 USDT, the user will earn a profit of 0.005 x (66,000 – 65235.51) = 3.82 USDT. If the price does not change or falls, the user will earn nothing. If the user believes the price of BTC will fall in 1 day, they should choose “Put” and activate the coupon. When it is settled, if the price of BTC falls to 64,500 USDT, the user will earn a profit of 0.005 x (65235.51 – 64,500) = 3.68 USDT. If the price does not change or rise, the user will earn nothing.
Frequently Asked Questions (FAQ)
Q: Huobi sent me an email saying an Experience Voucher has been sent to my account, but I cannot find it on the Huobi Global website. How can I find it?
A: To use Huobi Derivatives Warrant Experience Vouchers, you must first open your Warrant Account on Huobi. To do that, you must complete the Huobi Advanced Verification process and transfer any amount of USDT assets to your Warrant Account.
Q: Will I lose any money using the Experience Voucher?
A: No. Your maximum possible loss is 0 regardless of your activated voucher's position and market price movement. The maximum loss for an option buyer is the premium they paid for the option, regardless of its position. In the case of the Experience Voucher, the voucher’s premium has already been paid by Huobi Derivatives Warrant, so it’s completely free! Cheers.
Q: Can I sell the Experience Voucher prior to its expiration?
A: No. After your Experience Voucher is activated, you cannot sell it before the expiration date.
Q: Do I need to exercise the Experience Voucher manually when it is about to expire?
A: No. If there is no early exercise, the Experience Vouchers are automatically settled at expiration. Any profit you make will be immediately transferred to your Warrant Account.
Q: Can I activate my Experience Voucher after it expires?
A: No. You can only activate your Experience Voucher within a limited period of time. After it expires, you can no longer use it. Don’t let it expire without any use.
Q: How to check the earnings of my active Experience Vouchers?
A: You can check the Earnings (USDT) of your active Experience Vouchers under the “Order Details” bar on the Experience Center homepage.
Q: I love it! Where can I get more Huobi Derivatives Warrant Experience Vouchers?
A: Huobi Derivatives Warrant team will continue to send out tons of Experience Vouchers in coming events and campaigns. You can follow us on Twitter or join our Telegram channel to get the latest updates on Huobi Derivatives Warrant and participate in our events to win more Experience Vouchers.
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