5 Exchanges Where You Can Trade Crypto Options | HackerNoon

5 Exchanges Where You Can Trade Crypto Options

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Read on Terminal ReaderRead on Terminal ReaderOpen TLDROpen TLDR0 Options are a type of derivative instrument, which means they are based on an implicit in asset, such as commodities, stocks or cryptocurrencies. In this post we ’ ll expect at five exchanges that enable investors to trade crypto options. These include Bit.com, Deribit, FTX, OKX and FTX. We ’ ve besides looked at the features and fees involved in deal options trade.

imageimage There are many ways to trade cryptocurrency, from spot and margin trade, to derivatives such as options. In this station we ’ ll look at five exchanges that enable investors to trade crypto options, vitamin a well as the features and fees involved. Before we do thus, let ‘s look at what cryptocurrency options are .

What are Crypto Options?

Options are a type of derivative instrument, which means they are based on an underlie asset, such as commodities, stocks or cryptocurrencies. There are two basic types of options, these are ‘ call ’ and put ’ options. Call choice holders have the opportunity to buy an asset at a fixed price within a certain time. put option options have the opportunity to sell at a cook price during a certain time windowpane. When buying Bitcoin options, investors pay a bounty for the chance to buy or sell Bitcoin at a determined price in the future. This is basically another means to long or short Bitcoin, giving investors a luck to profit in a bear market and make even larger profits in a bull market. Like regular options, Bitcoin options owners can exercise their option by the condense passing date, after which the option position will be closed. If a trader wants to exit their place early, they can sell their position at the stream grocery store price. Below we ’ ll attend at five different exchanges that offer crypto options trade .

Bit.com

imageimage Bit.com is a high-performance derivatives central. The platform offers a series of institutional and retail-friendly features, including portfolio gross profit, which rewards hedgers. This is done by providing a more meaning margin benefit to their well-maintained low-risk portfolios. The platform besides enables block trading on all products through Paradigm and ACCX. Bit.com has a Unified margin ( UM ) system, an promote trade and risk management system launched by the exchange. This is a system that other exchanges like Derebit does not offer, however OKX has this sport besides. This system offers a one-account solution for its users, allowing them to use all of the assets in their report as collateral to trade all products available on the platform. In the Unified Margin manner, users trade through the mix margin score. This way you can trade spotlight, margin, ceaseless, futures and options in the lapp history. You don ’ t need to transfer funds rear and forth between multiple accounts. All collateral cryptocurrencies in the unite bill are shared as USDT denominated margin to improve capital use, thus lowering the gamble of being liquidated. The profit and passing of multiple positions held by users will be combined and offset against each early, whilst using Unified Margin. This room, a personnel casualty in a particular position will not inevitably trigger wedge extermination. rather, elimination will entirely occur once the overall report risk reaches a critical level. Fees on Bit.com are split into seven tiers with Maker fees starting at 0.0200 % and Taker fees starting at 0.0300 % .

Deribit

imageimage Deribit is an Amsterdam based, cryptocurrency central for Bitcoin futures and options trade.

ascribable to the broken handiness of crypto options, Deribit has become a popular options exchange for many crypto traders with large portfolios. Deribit offers European-style Bitcoin and Ethereum options, which are options that can entirely be exercised at the fourth dimension of exhalation, not before. Options are settled in cash alternatively of the fundamental asset. Deribit besides offers a range of BTC and ETH futures, including perpetuals and fixed death variants. Like most exchanges, Deribit uses a maker-taker model for its fees, with decreased fees for market makers. Deribit charges 0.04 % of the underlying asset value per narrow for Bitcoin and Ethereum options. Deribit besides charges an extra 0.02 % manner of speaking tip, this is charged when the option is settled .

FTX

imageimage FTX is a Hong Kong-based derivatives exchange founded in 2019 and launched by grocery store manufacturer Alameda Research. While competitors like Deribit list lone a few options that are traded with a traditional orderbook, FTX offers dateless hit prices and passing times through its “ Request For Quote ” system. This means that FTX doesn ’ t have to list hundreds ( or thousands ) of unlike regulate books, traders can plainly fill out a form with the choice they are matter to in, and request it from FTX directly. FTX offers trade in only European-style Bitcoin options, which can not be exercised early. All options are cash-settled in USD on the exhalation date. The derivatives segment offers traders over 250 ceaseless and quarterly futures, leverage tokens, BTC options, and MOVE contracts with a leverage limit of up to 101x. trade fees on FTX are split into six levels, starting from 0.020 – 0.000 % as manufacturer fees and 0.070 – 0.040 % as taker fees .

OKX

imageimage OKX ( once OKEx ) is a Malta based crypto exchange which offers a wide kind of deal services, from spot and margin deal, to futures, ageless swap and buy or deal crypto. OKX offers a Unified Account, besides known as Portfolio Margin. This offer means that traders can execute any blot, margin, futures, ageless swaps and options trades from one rate. They besides retain access to their entire portfolio, deal tools, gamble management settings and more, whilst doing so. Their Unified Account has three different account modes to match the requirements of retail and institutional investors, careless of their experience levels .

  1. Simple Mode – Designed for spot traders and options buyers.
  2. Single-currency Margin Mode – Users on this mode will be able to choose cross-margin or isolated-margin with their open positions.
  3. Multi-currency Margin & Portfolio Margin Mode – Traders can leverage all of their asset holdings on the platform as collateral.

deal fees on OKX are 0.1 % for market Makers and 0.15 % for Market Takers .

Binance

imageimage Binance is a leading global crypto trade platform that offers trade in a wide range of crypto assets. The platform besides has some of the highest fluidity for all assets in both the spot and the derivatives market. On Binance, traders can trade crypto options through the Binance Futures platform that was launched in 2020. You can trade with a leverage of up to 125x on cryptocurrency futures and options contracts. Binance allows the buy and selling of European-style Bitcoin options, which can alone be exercised on the shrink exhalation go steady. The option contracts are priced and settled in USDT. Options trade fees are split into two parts, the transaction fee and the fee to exercise : transaction fee : Index price x Transaction fee pace, i, 0.03 % of the underlying asset value drill fee : drill price x Fee to exercise pace, i, 0.015 % of the underlie asset value The fee will not exceed 10 % of the transaction fee and with the exercise tip, the fee measure will not exceed 10 % of the profit earned by exercising the option.

Conclusion

As more institutional investors come into the crypto space, exchanges offering derivatives deal will be crucial for the continue growth of the crypto market.

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