The renowned digital currency exchange OKEx, based in Malta, has unveiled BTC (Bitcoin) options trading for a limited bunch of clientele before a public launch that’s scheduled in January next year. The update was shared by the exchange that presently holds the position of the world’s third-biggest crypto exchange in terms of every day trading volume through an official press release dated December 26, 2019.
OKEx revealed that this new contract would be settled in Bitcoin on a daily basis. The official launch of this latest options trading for the public is slated for January 9, 2020.
In an official statement, the exchange’s Director of Financial Market, Lennix Lai, was quoted as saying,
We welcome clients from different segments, especially from our institutional clients, who have shown the fastest-growing demand in derivatives trading, especially on futures and perpetual swaps.
The reports further divulged that users would have to undergo a complete KYC (Know Your Customer) process and pass a suitability test to demonstrate their understanding of options trading for accessing OKEx options.
As per the exchange, the new offering of BTC options trading has its basis on the pricing model called the Black-Scholes, which would utilize real-time data. The exchange also disclosed that by introducing the options trading, they have provided the OKEx users with diversified hedging, as well as trading strategies, available alongside what OKEx already offers in the form of futures, perpetual swaps, and margin trading. Check out our latest Bitcoin news and live Bitcoin price now to learn more.
It’s important to note that the global derivatives marketplace Chicago Mercantile Exchange (CME) Group is also set to unveil its options product on January 13, 2020, that would be tied to Bitcoin futures. Bakkt, on the other hand, has already unveiled its options contract early this month.