Crypto Exchange OKEx To Rollout Options Trading By December End
OKEx, Malta-headquartered cryptocurrency exchange, has stated that it plans to offer options trading in cryptocurrencies from December 27 onwards.
The crypto exchange further claimed that the launch of options makes it “first crypto exchange to offer C2C, spot, futures, perpetual swap, and options trading under the same roof.”
The options will enable the trading platform’s clients to speculate on the price of an underlying asset by paying a premium.
Notably, to provide clients a feel of the platform, simulated trading facility is offered from December 12, with real account trading scheduled to begin on December 27.
To start providing options trading, the firm overhauled the entire infrastructure and even included anti price rigging system.
The option price is calculated in real-time using the Black-Scholes pricing model, which takes into account the kind of options, volatility, strike price, risk free rate and underlying asset price. Jay Hao, CEO of OKEx, explained the advantage of options trading.
“Options is a unique instrument that enable traders to manage, price and hedge the volatility of crypto assets with a combination of option contracts. It also gives a trader the ability to take advantage of more than just market direction. As the crypto market evolves, we aim to build a complete derivatives product suite, delivering solutions to optimize users’ trading strategies.”
Users interested in opening options trading account with OKEx must confirm to KYC (know your client) norms and clear a eligibility test to substantiate the knowledge about the products they intend to buy and sell.
The crypto derivative domain continues to see new products being offered due to an ever increasing competition. The planned launch of Bitcoin options on January 13, 2020 by Chicago Mercantile Exchange Group is an example to the aforesaid scenario.