Crypto Exchange OKEx To Launch Options Trading

Announcements, News | December 10, 2019 By:

Cryptocurrency exchange OKEx will be launching options trading, a type of derivatives trading that gives the buyer the ability to purchase or sell an underlying asset after paying a premium, later this month.

Headquartered in Malta, OKEx provides trading services such as token trading, futures trading, and index tracker to global traders with blockchain technology. Currently, its offers over 400 token and futures trading pairs enabling users to optimize their strategies. The exchange also helps traders, miners, and institutional investors optimize their investment strategies.

In a press release, OKEx said that options trading will be available on its platform starting December 27 and simulation will begin on December 12. OKEx Options will offer both buy and write options, which enhances trade flexibility and market transparency with trade prices that closely reflect market trends.

The exchange claims that OKEx Options is a major improvement upon other platforms that only support buy options. It 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,” OKEx said. “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.”

With the addition of OKEx Options, OKEx becomes the first cryptocurrency exchange to offer C2C, Spot, Futures, Perpetual Swap, and options trading under the same roof.

“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,” said Jay Hao, CEO of OKEx. “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.”