Deribit, a leading digital asset margin trading platform, announced on Monday the addition of daily Ethereum options.
Announced with a tweet, this is the second such instrument listed on the exchange as, earlier this month, the platform started offering daily Bitcoin index options to its client base.
— Deribit (@DeribitExchange) February 17, 2020
The new Ethereum-based product is having a strike price interval of $5 and the rest of the parameters were kept similar to the Bitcoin contracts, meaning the new instrument has a lifetime of two days and can be traded 24 hours preceding the expiry at 08:00 UTC every day.
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A derivatives market leader
Based in Panama, Deribit is one of the leading crypto derivatives platforms, handling 90 percent of the total crypto margin trades, according to Skew.
The platform is still facing competition in the market from many major players entering the derivatives arena and thus expanding its offerings to at least maintain its existing client base, if not adding more.
The exchange also detailed that the fees for the newly added instrument will be similar to other offerings, but there will be no settlement or delivery fees for its daily products.
“Daily options only have one or two days remaining lifetime and thus lower time value or premium and thus [are] cheaper. These shorter-dated, cheaper options are great instruments to use for short term strategies enabling the trader to hedge events or benefit from expected short term moves,” Coindesk quoted Andras Caron, CMO at the derivatives exchange.
Deribit is also going to reduce the tick size for all ether options from the current 0.001 ETH to 0.0005 ETH from February 19.
Previously based in the Netherlands, the derivatives exchange moved to Panama this month due to the newly enforced Fifth Anti-Money Laundering Directive (5AMLD) across Europe.