As the crypto market progresses and matures, the demand for more sophisticated trading products has increased. For example, options trading, which has its roots in the traditional finance (TradFi) ecosystem, is now one of the most popular commodities in the crypto space.
Several exchanges already offer crypto options trading for some popular digital currencies, including Bitcoin (BTC) and Ethereum (ETH). Realizing the growing popularity of crypto options trading, the Bybit crypto exchange is also expanding into the options trading market.
Bybit has just revealed that the exchange will launch a crypto options trading feature to complement its existing suite of perpetual and expiry futures.
Options trading is a type of derivative trading that allows traders to speculate on the future value of cryptocurrencies. Like other derivatives, options have leverage built into the actual trading product. Options give the option holder the right, but not the obligation, to buy or sell cryptocurrency on the expiration date.
Unlike futures contracts, in which the transaction must be concluded at the time of settlement, usually exchanging an underlying asset for cash, options contracts are “optional”, meaning they expire automatically if the buyer does not execute the transaction.
Upcoming Options Feature
The ByBit options trading feature to be launched will initially offer margin trading for USDC-denominated options. With Bybit’s options contracts, users can take positions based on an asset’s future price expectations in USD and settle their trades in USDC, allowing traders on the platform to expand their possible investment strategies. .
At the same time, advanced users such as market makers and institutional investors can use these products to apply a risk-based model to optimize the use of funds.
The launch of options trading will position Bybit as a fully integrated crypto trading ecosystem capable of meeting the needs of institutional investors through open API support while facilitating flexibility in European-style linear options trading.
Regarding the expansion of the platform into more sophisticated trading products, Ben Zhou, co-founder and CEO of Bybit, said, “Options is something that our existing clients have been asking for for a long time because there is no there was no other revolutionary product offered on the market at the time. We are confident that our cutting-edge offering will set the bar for the industry and normalize crypto options trading, much like what Robinhood has done for stock options. We are also excited to bring to options trading the world-class liquidity and reliability that our clients have come to associate with Bybit.
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