Cryptocurrency Derivatives Series: OKEx Expands Its Derivatives Business By Unveiling Crypto-Options Trading

Crypto-derivative avenue has been fetching the numerous interests after the recent trends in Bitcoin price sentiment. The Cryptocurrency futures market has evolved over the course of 2019 as products have been developed.

The renowned cryptocurrency exchange OKEx has been offering C2C wide ranges of spot and derivatives instruments, from ‘Futures, Perpetual Swap, to Options Trading’ mechanism under the same roof. OKEx has recently announced that USDT-margined perpetual swap trading feature on its platform. They have been constantly expanding their derivative marketplace for the cryptos.

For now, by testing their luck on Bitcoin (BTC) futures, OKEx has introduced bitcoin options trading exclusively for selective troop of clients ahead of a public launch next month.

We recently reported the ICE-backed Bakkt’s launch of options on futures in the recent past, in addition, CME also appears all set go to introduce options market in January. 

OKEx would be settling the options contract in bitcoin on a regular basis, and the live access is from January 9th, according to an announcement.

The financial market director of OKEx, Lennix Lai, said “we welcome clients from different segments, especially from our institutional clients, who have shown the fastest-growing demand in derivatives trading, especially on futures and perpetual swap”. 

In order to obtain the access to OKEx options, the clients are expected to comply KYC (know-your-customer) authentication process, and undergo a fitness test as well to prove they are aware of options market mechanism, as the options market comes up with an element of risk as well. 

Options provides buyers the right, but not the obligation and vice versa in case of sellers. As the options are getting traction in the gamut of crypto-space, and the bitcoin miners who have their exposures can hedge the risk exposure using new derivatives products.