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.
Options trading is a type of derivatives trading that gives the buyer the ability to purchase or sell an underlying asset after paying a premium. OKEx Options will 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.
OKEx Options 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.
“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,” said Jay Hao, CEO of OKEx. “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.”
