Deribit Review 2024: Features, Fees & Security

The Deribit Option Wizard helps Deribit traders find the best option strategy based on their price prediction. 

Choosing a good Option strategy is a major problem faced by most inexperienced option traders as it can affect the overall success of your trades. The Deribit Option Wizard eliminates this problem and makes it easier for individual investors to effortlessly use Options to express their views on the market. 

The Option Wizard can be added as a component to your Deribit trading page by clicking on “Add Component” and then selecting Option Wizard in the drop-down menu. 

As already stated, the Option Wizard offers you an optimal Option strategy based on your market expectations. You have total control over the strategy requirements. 

This means you determine the risk, the predicted time, and the timeframe for the prediction. 

Once you set the strategy requirements, the Option Wizard uses real-time prices from the option markets to ensure the most accurate estimate of your results. 

Since the Option Wizard helps you find the best Option strategy based on your price predictions, it is best you have basic knowledge of trading Options before using them. 

If you are not familiar with the workings and risks associated with Options, you should take the Deribit Options Course before using the Option Wizard. 

As already stated, you have total control of the strategy requirements when using the Option Wizard. 

To calculate a strategy with the Option Wizard, you must provide 4 pieces of information.  

These are:

• The currency for which you want to calculate an option strategy 

• Your price expectation for the selected currency 

• The date for which the price expectations apply and 

• The maximum amount you wish to invest in the option strategy. 

Note: If you provide a market expectation with an extremely low probability of occurring, the Option Wizard may suggest some unusual strategy. 

Before the Option Wizard suggests a strategy, it first calculates the potential profit for each option, and then selects the Option strategy with the highest expected return. 

Once the Option Wizard chooses the best Option strategy, it provides you with an estimate of the expected profit (if your prediction is correct), the Return in %, and the maximum loss. 

To trade a strategy suggested by the Option Wizard, click the “Review Order” button. 

When you do this an order form will pop up. Cross-check the details of the order and click ” Confirm Order”. 

Since the initial calculation of the Option strategies does not consider your available account balance, you should check in advance if the purchase of the entire strategy is within your budget. 

As stated earlier, good knowledge of how Options work is required to use the Option Wizard, as it enables you to accurately interpret the outcomes of the Option Wizard. 

The Option Wizard calculates the optimal strategy based on real-time prices. The profit, return, and maximum loss estimates are based on the current option prices. 

Real-time prices are subject to change with time and as the market moves. If the market price changes between strategy calculations, the values for each of the estimates provided by the Option Wizard will also change. 

The prices can also change if you manually edit the Limit Price of the order. 

That said, the Option Wizard cannot have the ability to determine the probability of a prediction occurring. 

This means it does not provide any assessment regarding the likelihood of your predictions being accurate.