Top Crypto Platform Bybit Launches Options Trading
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Loading... - Alice Kojo
- 16 Aug 2022
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Bybit, one of the world’s fastest growing cryptocurrency exchanges, has announced its expansion into crypto options trading, adding to its existing product line of perpetual futures contracts and expiration futures contracts.
Bybit’s new options trading offering is based on user feedback, representing an important step in developing another powerful tool for Bybit users. Upon launch, Bybit users will be able to trade USDC options and perpetuals through portfolio margin, which adopts a risk based model for experienced traders, including market makers and institutional clients, to increase fund utilization based on the underlying price and volatility.
This function will support the platform in becoming a fully integrated trading powerhouse with a user-friendly interface that provides open API support, to facilitate flexibility in trading European-style, linear options.
Options Trading in Crypto
With options contracts, Bybit users are able to speculate on the future price in USD of an underlying asset and settle their trades in USDC. Unlike a futures contract where the transaction is mandatory and has to be completed at the settlement date, options contracts are optional and will expire without a transaction if the option is not exercised. The risk of options trading is therefore relatively low for traders because the maximum risk is determined by the premium paid while there is no such limit for futures contracts. For sellers, the risk is limitless. Read More...
