Cryptocurrency exchange OKEx has launched a closed bitcoin (EXANTE: Bitcoin) options trades after the successful end of the trading period in simulation mode, iHodl Russia reports.
As for now, the tool is available to a limited circle of customers. A full-scale launch is expected to take place on January 9, 2020.
Financial marketplace manager of OKEx Lennix Lai says options are a unique instrument that enables traders to manage, price and hedge the volatility of crypto assets.
"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 swaps," Lai added in a statement.
The OKEx Options platform will reportedly use an enhanced anti-manipulation mechanism based on the Black-Scholes pricing model.
This model implies that if the underlying asset is traded on the market, then the option price on it is implicitly set by the market itself. Unlike futures, options feature gives its buyer the right, but not the obligation, to buy or sell an asset at a predetermined price at a certain point in the future.
Earlier iHodl reported that OKEx added support for USDT futures.
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