> For the complete documentation index, see [llms.txt](https://ton-hedge.gitbook.io/ton-hedge-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ton-hedge.gitbook.io/ton-hedge-docs/user-manual/trading.md). # Trading This is a how-to manual that describes step-by-step how you can buy and exercise an option. If you want to understand the mechanism in more detail, or see formulas and examples of how PnL is calculated, please navigate to the [docs section](/ton-hedge-docs/options/providing-liquidity.md). With TON Hedge, you can trade cash-settled options that allow you to lock in the asset price and earn from the price difference in USDT, directly to your TON wallet, during a fixed period. You don't need to own the asset to buy an option for it. ## How to buy an option First of all you need to decide, how bullish or bearish you are about the TON price: * 📈 If you expect sharp price rising, you should choose **Call options** * 📉 If you expect a price drop soon, your should choose **Put options**

Choose Call if you are bullish, and Put if bearish

Then you need to choose amount of options you want to buy – 1 options covers 1 TON. So, the more options you buy, the more you will need to pay, but the potential profit will increase proportionally:

Choose amount of options, that affects total cost and potential profit

Then you need to choose an expiration date for your option from a range of 1 day to 1 month. You can exercise an option and get your profit only during the period before **08:00** **UTC** on the expiration date, so choose responsibly. The longer the period, the higher the option cost. If you expect a sharp price movement soon, a shorter option period might be best. If you're less certain, a longer option period might be more suitable:

Finally, you can choose a strike price based on your market expectations. If you’re more conservative about price movement, an ATM (at the market) strike price might be best. However, if you expect significant price movement, you can set a strike price **10% above** the market price for **Call options** or **10% below** the market price for **Put options.** Setting a strike price can potentially increase your profit while reducing the option's cost. There is a profit table that automatically adjusts based on the selected parameters. You can also experiment with the inputs to see how much you can earn in different scenarios. You can change inputs and see how the potential profit changes. This is it – you can double-check the option cost, and then complete the transaction in your wallet:

## How to exercise an option To get your profit from an active option, you need to exercise it: this can be done in the **Strategies** –> **Active** tab. You can do it with one click at any time before **08:00** **UTC** on the expiration date if the asset price has moved in the right direction:

**Call** **options**: current asset price must be **higher** than the strike price.

**Put** **options**: current asset price must be **lower** than the strike price.

If you don't exercise your option in time, it expires and is automatically exercised after **08:00** **UTC** on the expiration date. Profit is paid directly to your wallet in **USDT.** You can see your exercised options and their results in the **Strategies** -> **Closed** tab: