Understanding Medium Payouts on Rolla

Introduction

Medium payouts on Rolla, designed for balanced risk-reward trading, use vertical option spreads. This guide explains the mechanics of these trades, focusing on the payout and collateral return aspects.

What is a Medium Payout?

Medium payouts on Rolla are structured for traders seeking moderate returns with controlled risks, contrasting with the more risk-intensive High payout. They involve vertical option spreads, a more calculated approach to trading.

Key Features of Medium Payouts

1. Balanced Risk-Reward

Medium payouts provide a stable trading option, balancing potential returns with manageable risks, making them suitable for conservative traders.

2. Immediate Payout Reception

At the time of the trade, the payout is received immediately.

3. Stablecoin Collateral Options

Medium payouts permit the use of various stablecoins, enhancing trading flexibility.

Trading Scenarios for Medium Payouts

Down Trade

- Profit: If you are trading down, profit occurs when the Expiration Price is below the high strike. The payout amount is displayed on the button at the time of the trade.



- Loss: Loss happens when the Expiration Price is above the low strike. In Medium payouts, the loss is 100% minus the Payout. For instance, if the displayed payout is 40%, the loss would be 60%.



- Between Strikes: If the expiration price is between the strikes, read here for further details.

Up Trade

- Profit: If you are trading up, profit occurs when the Expiration Price is above the high strike. The payout amount is displayed on the button.



- Loss: Loss occurs when the Expiration Price is below the low strike. On Medium payouts, the loss is 100% minus the Payout. For example, if the displayed payout is 40%, the loss would be 60%.



- Between Strikes: If the expiration price is between the strikes, refer to the detailed explanation.

Conclusion

Medium payouts on Rolla, leveraging vertical option spreads, provide a methodical and balanced trading experience, offering immediate premium receipt and varying collateral return based on trade outcomes. This approach is suitable for those seeking moderate and controlled risks.

Disclaimer: Trading involves risk, especially in the volatile cryptocurrency market. It's important for traders to operate within their risk tolerance levels.

Updated on: 05/12/2023