Option Scalps

Please familiarize yourself with Option Scalps and Option Fundamentals before attempting to use this walkthrough.

Quick Access

Accessing Option Scalps

It should look like this:
  1. 2.
    Select the asset you would like to trade or provide liquidity for
Click the drop down menu in the top left corner to select your trading pair.
Once selected, your page will update to reflect the change
  1. 3.
    Connect your wallet
The top right hand side of the page has a "Connect Wallet" button.
Click "Connect Wallet" and follow the prompts according to what wallet provider you use.
Wa wa wee wa. You are now ready to provide liquidity for or trade Option Scalps!

Providing Liquidity for Option Scalps

  1. 1.
    Switch to the 'LP' tab
Option Scalps are on 'Trade' by default.
Switch to LPing by clicking the 'LP' tab.
The card will switch to the 'LP' page.
  1. 2.
    Select the token you would like to deposit
Users may deposit $USDC to write longs or the base asset (e.g. $ARB in our example) to write shorts.
Click the asset tab you would like to deposit to change your deposit token.
  1. 3.
    Enter the amount of tokens you would like to deposit.
Enter the amount of tokens you would like to deposit.
If you are happy with this, click the 'Deposit' button and follow the prompts. You will receive an ERC-4626 receipt token that represents your position.
  1. 4.
    View your position
The LP tab will be on 'Deposit' by default.
Click the 'Withdraw' button to view your position and the exchange rate between your receipt token and the underlying.
Note that the ratio of underlying to receipt token increases over time as it accrues premiums from traders.
  1. 5.
    Withdraw your position
Enter the amount of LP tokens you would like to withdraw or click the underlined LP Token section if you would like to withdraw all liquidity.
If you are happy with this, click the 'Withdraw' button and follow the prompts. Note that you may only withdraw if there is unutilized liquidity and there is a cooldown period of 1 hour from your latest deposit before withdrawals are possible.

Trading Option Scalps

Opening a Market Order

Market orders will open a trade immediately at the current spot price and you will pay swap fees entry.
  1. 1.
    Select 'Long' or 'Short'
After ensuring you are trading the correct token pair, select 'Long' or 'Short' position.
A long profits if the price of the asset increases while a short profits if the price of an asset decreases. You may tick 'Show as USDC' if you want your notional value to be denoted in $USDC or leave it unchecked to denote it in the base asset.
  1. 2.
    Enter your position size
Enter your position size in the trade box.
This is the notional value of your trade after leverage is applied.
  1. 3.
    Select your scalp duration
Click the time options to select your scalp duration.
The duration you have chosen will be highlighted in grey and will determine the cost of your premium. If you do not close your position before the duration ends, it will be closed for you automatically.
  1. 4.
    Select your leverage
Use the slider to select your leverage amount.
Your Position Size/Leverage will denote the amount of margin you are required to deposit.
  1. 5.
    Open position
After completing the above parameters, the output box will highlight some key information including margin, fees, and liquidation price.
If you are happy with this, click 'Open Position' and follow the prompts.
Congratulations, you have opened a scalp position via a market order.

Opening a Limit Order

Setting a limit order assigns a price at which position will be opened and you will receive swap fees on entry.
  1. 1.
    Select Limit Order
Scalps are set to market order by default.
Tick 'Open with a Limit Order' to trade using limit orders.
  1. 2.
    Enter your scalp details
Enter your scalp details such as long or short, position size, scalp duration, and leverage amount, as per 1-4 of Market Order.
  1. 3.
    Enter your limit price
The limit price is the price at which your position will be opened.
If you are happy with the output information, click 'Open Position' and follow the prompts.
  1. 4.
    View limit order
While your limit order has not been filled, it will be visible under 'Active limit orders'.
If your position gets filled, it will automatically be moved to your open positions. If you would like to cancel your limit order, you may click 'Cancel' at any time until it is filled to remove it.

Closing an Order

When your position is opened, the bottom of the page will show your open positions.
Important information such as liquidation price and expiry are also denoted. Note that if your liquidation price is hit or your expiry elapses, your postiion will be closed automatically.

Manual Closure

There are two ways a scalp position can be manually closed.
  1. 1.
    Closing via Market Order
If you want to close your position immediately, you can close at the current spot price by clicking 'Close'.
You will pay Uniswap fees based on the position size that is swapped.
  1. 2.
    Closing via Limit Order
If you want to close your position via a limit order, you can click 'Limit Close'.
You will be prompted to enter a price at which you would like your position to be closed.
Click 'Create limit order' and follow the prompts.
Your limit order close position should be visible in the 'Active Limit Orders' section.
If your limit close is filled, you will earn Uniswap fees based on the position size that is swapped. Note that your limit close will not close if your chosen price does not hit.
You may cancel your limit order at any time to modify the price or change to a market close.