OKEx Begins Bitcoin Options Trials Ahead of 2020 Launch

By December 27, 2019Bitcoin Business
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Okex Begins Bitcoin Options Trial Ahead of 2020 Launch

OKEx has announced it has begun Bitcoin options trading. Currently, it is giving early access to selected traders ahead of its proposed launch.

According to a tweet shared by OKEx exchange BTC options trading are now available. Though, strictly by invitation.

#OKExOptions: Early access is now live!

Be the first to experience #cryptocurrency options trading at @OKEx by filling out this form: https://t.co/SnlHsYuLA2 pic.twitter.com/q6KTZ7Ynro

— OKEx (@OKEx) December 26, 2019

In a press release, the exchange noted that this move part of its derivatives trading expansion strategy.

The crypto exchange further indicated that the new contract would be completed in Bitcoin (BTC) on a daily basis.

OKEx options based on the Black-Scholes pricing model

Options are notably riskier because they rely on making pure bets, and losses may accrue quickly. However, they also permit trading BTC based on predictions. Presently, predictive markets are gaining speed, as expectations are becoming increasingly important.

According to OKEx, its Bitcoin options contract is based on the Black-Scholes pricing model. It’s a valuation algorithm that has been the basis for the pricing model of options on traditional assets since the 1970s.

Enzo Villani, OKEx head of international strategy and innovation has stated the market operator is working on risk management. He added that they are also trying to increase the liquidity of the market.

The contract will use real-time data. The company says its introduction is part of the platform’s trading infrastructure revamp.

Options on futures are currently available on the Bakkt exchange and will be added by the CME futures market on January 13.

OKEx improving

OKEx crypto exchange is reportedly getting better for users because of the different new features.

Recently, the exchange partnered FirmaChain to grants customers access to use OKEx’s global utility token, OKB for purchases on FirmaChain.

Furthermore, the Malta-based cryptocurrency exchange announced plans to offer C2C, spot, futures, and perpetual swap.

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