Cryptocurrency derivatives platform FTX has just announced it is rolling out oil futures right when oil prices for May contract have dropped below zero for the first time in its history.
According to the trading platform, oil futures contracts expire to the spot price of WTI crude oil, plus $100. Thus, the exchange will add $100 to each contract if the spot price of oil falls below zero.
FTX CEO and founder Sam Bankman-Fried said the platform has made the decision to launch this new investment instrument due to the high user demand.
However, the users of the service interested in accessing this new investment instrument will have to successfully complete the level 1 of the platform's KYC process. In addition, residents in the US, UK, EU, UAE, Canada, Hong Kong, Singapore, Cambodia, Turkey and China will not be able to trade this instrument.
These new oil futures contracts have a monthly expiration. However, it could be changed in the future depending on demand.
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