Crypto exchange OKEx on Monday announced its plan to launch a crypto options trading platform.
Dubbed OKEx Options, the platform will be based on an upgraded infrastructure, and, according to the exchange, it will be faster and more stable.
The platform will initiate simulation trading next Thursday, while it will be launched on December 27.
Commenting on the prospect, Jay Hao, chief executive of OKEx, said: “We are excited about the launch, given the increasing demand of crypto derivative products across all our client segments, especially institutional clients that showed the fastest growing demand in derivative trading. We aim to provide the broadest range of trading and risk management tools to all our clients from institutional to retail market participants.”
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A universal platform
The Malta-registered exchange is among the top spot exchanges for digital asset trading in terms of trading volume. With the introduction of the new service, the portfolio of the exchange includes spot market trading, futures trading, and perpetual swap offering.
Options are a type of derivative, which allows traders to enter into buying or selling the contract of an asset without any obligation of buying or selling. Traders only need to pay a fee if the deal is not suitable at the maturity.
As crypto derivatives are seen as the gateway of institutional entrance into the sector, major players are planning to offer it. Both CME Group and ICE-backed Bakkt are in line to launch crypto options after the success of their Bitcoin futures product – the former will launch its product on January 13 while Bakkt will launch its product later today.
“Options is a unique instrument that enable traders to manage, price and hedge the volatility of crypto assets with a combination of option contracts. It also gives a trader the ability to take advantage of more than just market direction. As the crypto market evolves, we aim to build a complete derivatives product suite, delivering solutions to optimize users’ trading strategies. OKEx Options is a major step towards this goal,” Hao added.