Week 15 Updates🔥DBOE at Singapore Fintech Festival 2023 & MWR Initiative

DBOE
4 min readNov 17, 2023

💎 Unveiling the Enhanced Desktop UI/UX version

DBOE Innovative Desktop UI/UX Revamp

We’re thrilled to roll out the enhanced UI/UX desktop version aimed at unifying your crypto Options trading experience. Our focus on user-centric design ensures a seamless and visually appealing interface tailored to both seasoned and novice options traders. Check it out: https://dboe.exchange

💎 DBOE at Singapore Fintech Festival 2023

We’ve experienced unforgettable moments at the Singapore Fintech Festival 2023. The lively buzz at our booth and the constructive feedback on our sleek new UI/UX are propelling us forward. Join us as we ignite innovation in DeFi together!

🗓️ Date & Time: 15–17 Nov 2023, 10am-6pm SGT (GMT+8).

📍 Venue: Singapore Expo, Booth No. F27, Hall 4.

💰 Exclusive rewards: Earn DBOE tokens for a chance to grab on-the-spot goodies, including T-shirts 👕, stylish hats 🧢, and water bottles 💧 .

Derived from the official DBOE (X) account: https://twitter.com/DBOE_Official/status/1725447469671252211

To celebrate the launch of DBOE’s new UI/UX and the exciting SFF event, we’ve extended our Fee Rebate Program until the end of November 2023. Cheers to a seamless experience!

Get up to 20 DBOE or 2.0 USDT (randomly) for your first trade on DBOE

Trade Now: https://dboe.exchange

🛎️ Question of the Week: What is MWR?

“How to best utilise the MWR information?” This is one of the most frequent questions asked by our users. Let’s delve deeper into the concept:

MWR stands for “Max Winning Ratio”, applicable for Options Buyers. Option Sellers apparently can imply what it means for them from this ratio. In essence, MWR is the ratio of the maximum payout at the expiry over the initial premium to pay as of now.

To get a sense of whether the odds or probability is attractive, always start with the “at-the-money” MWR first and use that ratio as a benchmark to compare with the probability of other Options.

Consider buying an “at-the-money” DBOE Call Option on ETH, labelled E2070CNov12, with a price range of $2070 to $2170 and an expiry on November 15, 2023 (1 day to expiry).

Example of DBOE Max Winning Ratio (MWR)

The more volatile the market, the more expensive the option. So given the current market situation, the initial premium is priced at ~$21 per Option. Users can cross check with other liquid Option exchanges such as Deribit.

The maximum profit will happen when ETH reaches 2170 or above at the expiry, therefore: The maximum winning ratio (MWR) = max payoff over initial premium = $100 / $21 = 4.8 (every $1.0 invested brings home $4.8)

🔸How MWR of 4.8 helps?

  1. It gives users a comparative power when comparing across Options with different strike ranges. The further out of the money Options will offer a high MWR but of course the odds of it happening here are lower.
  2. MWR also helps making a decision whether between trading Futures or Options especially when users have a strong conviction on the market direction.

For example: if users are using 20x leverage (pretty standard offering from Crypto exchanges), and they buy one (1) ETH Futures, then they need to have an initial margin of 2070/20 ~ $104.

When ETH reaches 2170 the next day, their P&L is $100 hence their equivalent “winning ratio” here is (104 + 100)/104 ~ 2.0. On top of a lower MWR, for worst case scenario, it’s worth noting that unlike Buying Options, Users could theoretically suffer unlimited loss when Buying Futures.

🔸Conclusion:

Using Options or Futures boils down to the question of an individual’s risk management and the reward curve. In the best scenario, users trading ATM DBOE short-dated Options will be rewarded a few times as high as trading Futures.

Ths MWR is an initiative by DBOE to make Options trading decisions simpler and more straightforward.

Happy trading!

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