- The crypto exchange OKEx has announced the launch of Bitcoin options starting December 27, 2019.
- OKEx will be the first crypto exchange to offer C2C, spot, futures, swap and options trading on a single platform.
OKEx, the cryptocurrency exchange based in Malta, announced today, 9th December, that it will launch Bitcoin options trading. The company announced that the trading of Bitcoin options will be launched today, 9 December. Furthermore it was announced that trading in cash settled options in the BTC/USD pair will be introduced due to high institutional demand. The launch date is 27 December 2019, whereby the exchange will start simulated option trading as early as 12 December.
OKex continues to expand
With the expansion, OKEx will be the first crypto exchange to offer C2C, spot, futures, swap and options trading under one roof. Option trading is a form of derivatives trading that allows the buyer to buy or sell an underlying asset after paying a premium. OKEx Options will offer both call and put options.
To reduce the risk of manipulation of closing prices, OKEx said it will average spot data from a number of platforms to obtain a “fair” settlement price for its option products. The option price is calculated by OKEx in real time using the Black-Scholes model, whereby individual transactions have no impact on the options market.
To trade OKex’s Bitcoin options, users must go through a KYC process and also pass an “eligibility test” to prove their understanding of option trading. Jay Hao, CEO of OKEx, stated in the press release that the Bitcoin options will be open to all traders, from institutional investors to individual investors:
We are excited about the launch, given the increasing demand of crypto derivative products across all our client segments, especially institutional clients that showed the fastest growing demand in derivative trading. We aim to provide the broadest range of trading and risk management tools to all our clients from institutional to retail market participants.
Hao also highlighted the unique opportunities offered by options contracts:
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. OKEx Options is a major step towards this goal
Bitcoin options are currently high on the agenda. Most recently, the Chicago Mercantile Exchange (CME) announced the introduction of Bitcoin options contracts. Meanwhile, the launch of Bitcoin options at Bakkt is expected today.