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Cryptocurrency Derivatives Series: OKEx Provides One Step Access For All Types of Crypto-Derivatives Instruments

Malta-based, world’s largest spot and futures digital asset exchange by trading volume, ‘OKEx’ now becomes the first cryptocurrency exchange to offer C2C wide ranges of Spot and derivatives instruments, such as ‘Futures, Perpetual Swap, and Options Trading’ under the same roof.

Today, the exchange has announced the launch of options trading in a press release. OKEx Options Trading represents a complete upgrade to the platform’s trading architecture, backed by a faster, more stable and robust infrastructure. 

Options trading will reportedly be available on OKEx starting December 27, 2019, and simulation will begin on December 12, 2019. With this addition, OKEx is the first crypto exchange to offer C2C, spot, futures, perpetual swap, and options trading under the same roof. Users can select from a wide range of products to best fit their trading and hedging strategies.

OKEx has recently announced that it will soon be launching USDT-margined perpetual swap trading feature on its platform. As per the official sources, the exchange has scheduled the ‘go-live’ date on December 16thfor this latest cryptocurrency derivative product.

After successfully launching USDTFutures, the exchange is now rolling out USDT-Margined Perpetual Swap which is currently in simulation stage.

OKEx Options will now offer both buy and write options, which enhances trade flexibility and market transparency with trade prices that closely reflect market trends. OKEx’s version is a major improvement upon other platforms that only support buy options.

Options trading facility at OKEx, also includes a rigorous anti-manipulation system. Designed to prevent close price manipulation, OKEx averages out the spot data from multiple platforms to obtain a fair settlement price. The options mark price is determined by OKEx in real time using the Black-Scholes pricing model. Since a single transaction or quote cannot affect the options market -- which only responds to estimated options volatility -- users can make better informed decisions.

The CEO of OKEx, Jay Hao said “We are excited about the upcoming launch of options trading. We’ve seen increasing demand for crypto derivative products across all our client segments, especially from our institutional clients, who have shown the fastest-growing demand in derivative trading, especially on futures or perpetual swap,” he adds “we aim to provide the broadest range of trading and risk management tools to all our clients from institutional to retail market participants.”

“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,” continued Hao. “As the crypto market evolves, we aim to build a complete derivatives product suite, delivering solutions to optimize users’ trading strategies. OKEx Options is a major step towards this goal.”

To access OKEx Options, the users must fulfil KYC validation and pass a suitability test to show they understand the products they’re trading. Options trading simulation will begin on December 12, 2019, with live trading launching December 27, 2019. 

By Niranjan Patil
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