On Monday, crypto exchange OKEx announced its plan to launch options trading on December 27.
In a tweet, OKEx exchange noted that simulated options trading would commence on December 12, before live trading. At the same time, the exchange stated that the new addition makes OKEx the first crypto exchange to offer C2C, spot, and futures. As well as perpetual swap and options trading on its platform.
NEW LAUNCH: Another big news! We'll soon launch Options Trading on #OKEx.
Starting from Dec 12, join our Simulation Trading Contest & share rewards up to 150,000 $USDT 🏆🎉
— OKEx (@OKEx) December 9, 2019
Jay Hao, OKEx CEO, has expressed his satisfaction over the launch of the cryptocurrency options trading. He noted that the exchange aims to provide the broadest range of trading and risk management tools to its users.
“Options is a unique instrument that enables traders to manage, price and hedge the volatility of crypto assets with a combination of options 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 trading is a major step towards achieving this goal,” Hao said.
OKEx upgrade of the exchange
According to reports, this new initiative represents an upgrade to the platform’s trading architecture. The crypto exchange says its support has now a faster, more stable and robust infrastructure.
OKEx Options will offer to buy and write options, which enhances trade flexibility and market transparency with prices that reflect market trends. The new initiative price is determined in real-time by employing the Black-Scholes pricing model. It considers such factors as volatility, option type, underlying asset price, time, strike price and the risk-free rate.
Speaking about options. It is a type of derivative that allows traders to enter into buying or selling the contract of an asset without any obligation. Traders only need to pay a fee if the deal is not suitable at the maturity. Derivatives are regarded most of the time as the institutional entrance into the sector. And many major players are planning to offer it.
Previously, Altcoin Buzz reported that OKEx went after Tezos.