# Trading on Wasabi Protocol

By [Wasabi.xyz](https://paragraph.com/@wasabixyz) · 2023-04-22

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**The Wasabi Protocol is revolutionizing the world of non-fungible tokens (NFTs) by offering traders a platform to buy and sell options on ERC-721 contracts. As the NFT market continues to flourish, Wasabi Protocol aims to bring sophisticated trading opportunities to the space. With a successful two-month testnet phase under its belt, the protocol is preparing for its mainnet launch.**

Wasabi Protocol is now live in closed beta! To access the protocol, you must be a holder of the [Wasabi Pass](https://opensea.io/collection/wasabi-pass), which serves as an access token to the protocol. Once acquired, follow these steps to get started:

How to Trade on Wasabi Protocol
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Options trading allows investors to buy and sell contracts that give them the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specific date. Wasabi Protocol brings this concept to the NFT space, enabling traders to capitalize on the potential growth or hedge their positions in the ERC-721 market.

Step-by-Step Guide to Trading NFT Options
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1.  Visit the Wasabi Protocol website at Wasabi.xyz
    
2.  Connect your wallet: To interact with Wasabi Protocol, you'll need a compatible Ethereum wallet (such as MetaMask) with sufficient funds.
    
3.  Select the "Buy Options" button.
    
4.  Choose your asset pair: Select the desired NFT Collection (ERC-721 token pair) for which you want to trade options.
    
5.  Set your contract parameters: Define the option's strike price, expiration date, and whether you want to buy a call (right to buy) or put (right to sell) option.
    
6.  Review the premium: The premium is the price you'll pay to purchase the option contract. Review this amount and ensure it aligns with your trading strategy and risk appetite.
    
7.  Place your order: Click on the "Buy" button to place your order. Your wallet will prompt you to approve and sign the transaction.
    
8.  Monitor your position: Track the performance of your options contracts and manage your positions through the Wasabi Protocol dashboard.
    

Risk Management Strategies for NFT Options Trading
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1.  Diversify your portfolio: Invest in options across multiple ERC-721 token pairs to minimize the impact of adverse price movements in a single asset.
    
2.  Set stop-loss orders: Establish stop-loss orders to automatically close your positions if the underlying asset's price moves against your prediction, limiting potential losses.
    
3.  Employ a disciplined approach: Establish a trading plan with clear entry and exit criteria, and stick to it. This will help you maintain a consistent approach and avoid emotional decision-making.
    
4.  Stay informed: Keep up-to-date with market trends, news, and developments in the NFT and DeFi sectors, as these factors can influence the value of your options contracts.

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*Originally published on [Wasabi.xyz](https://paragraph.com/@wasabixyz/trading-on-wasabi-protocol)*