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For traders, opening long positions is straightforward: Select a type of collateral, and swap for Spear tokens as calls, or Shield tokens as puts.
Longing digital options is similar to market buying options in a traditional order book. Instead of matching with specific orders one after another, the swaps execute against a passive pool of liquidity. Liquidity providers earn fees proportional to their committed capital. The protocol's swap functionalities are long-only. Collateral tokens are swapped for options tokens, not the reverse.
Before expiry, traders can close their longs by providing the options token they've bought as liquidity to a price range, similar to limit sell orders in a traditional order book. Alternatively, to hedge or offset a number of long calls (puts), one can buy the same amount of puts (calls), or provide collateral liquidity to open shorts.
After expiry, if the options tokens are in-the-money, they can be exercised for 1 collateral token each. The following pages provide step-by-step guides about using the protocol interface to complete the above steps: