# Trading Mechanics (Call/Put and Long/Short)

**Two Types of OPerps Tokens:**

1. **Long OPerps (Leveraged trading):**
   * Designed for traders seeking massive profits in a short period by leveraging market movements and paying a premium. Long OPerps holders use leverage to amplify potential gains based on their market predictions. There are two types of Long OPerps:&#x20;
     * **Long Call OPerps (LCO):**
       * Enables traders to profit in rising markets through leveraged trades. LCO holders engage in leveraged trading to capitalize on upward market movements and potentially magnify their profits.
     * **Long Put OPerps (LPO):**

       * Enables traders to profit in falling markets through leveraged trades. LPO holders leverage market downturns to generate profits, taking advantage of falling asset prices.

2. **Short OPerps (Premium earning):**
   * Suitable for passive traders who earn profits from the premiums paid by Long OPerps holders. Short OPerps holders earn passive income by facilitating the leveraged trades of Long OPerps holders. There are two types of Short OPerps:&#x20;
     * **Short Call OPerps (SCO):**
       * Enables passive traders to generate yield in neutral or falling markets. SCO tokens allow liquidity providers to earn fees or premiums consistently during stagnant or bearish markets by earning premiums from Long Call OPerps holders.
     * **Short Put OPerps (SPO):**
       * Enables passive traders to generate yield in neutral or rising markets. SPO tokens enable liquidity providers to earn fees or premiums from stable or bullish market scenarios by earning premiums from Long OPerps holders.

**Trading Mechanics:**

* **LCO and LPO Holders:**
  * Pay a fixed fee/premium at the end of each cycle for leveraged exposure to price movements. They compensate Short OPerps holders for providing them with leverage to amplify their gains.
* **SCO and SPO Holders:**
  * Receive these fees/premiums in return for enabling the leverage for Long OPerps holders. They earn premiums for facilitating leveraged trading and providing Long OPerps holders with the opportunity to amplify their returns.
