OKEx Exchange Adds Bitcoin Options
Derivative trading on OKEx platform has been expanded. The announcement by OKEx maintained that it is launching a test on Bitcoin futures. OKEx is a renowned exchange and is now quite active in futures trading, thereby becoming one of the leading BTC futures operators.
#OKExOptions: Early access is now live!
— OKEx (@OKEx) December 26, 2019
Options carry higher risk, but enables Bitcoin trading on the basis of predictions. At the moment, predictive markets are becoming speedy, as anticipations tend to become further crucial even than real activity on the spot markets.
Bakkt exchange has added options on futures while the CME futures market will add it on January 13. Bitcoin is still quite volatile and cannot be predicted, but these characteristics enable traders to bet on price moves. A fresh scene has come up between buyers and sellers through this, as price predictions are competing.
A form is now available for data gathering and to invite those who will test options trading in the initial stages. However, a warning by OKEx maintained that the market is live, and utilizes real funds to settle. Due to the higher risk associated, losses may come quite soon.
Price swaying from one source will be avoided by gathering pricing information from various exchanges. OKEx is working on risk management and the increment of market liquidity, says Enzo Villani.
With options, traders have the right but not the obligation for the sales or purchase of Bitcoin at a definite price. Risk hedging may be improved as options are becoming mainstream.
Bakkt, OKEx & FTX will all have options markets soon. Deribit have had 95% of average daily volume in 2019, I wonder how much of that they'll be able to retain by this time next year. https://t.co/jrdoeYoOxM
— 📈📉 (@TRDXBT) December 23, 2019
Nevertheless, traders may need to be cautious because the instrument can bring about remarkable losses. Within the previous twenty-four hours, the trading volume of Bitcoin was close to 21 billion USD.
Featured image courtesy of Shutterstock. Source: Cryptopress.