Delta exchange, cryptocurrency derivatives trading platform has introduced options trading for two major altcoins such as Binance Coin (BNB) and Chainlink’s LINK. In the announcement which was held on June 19, 2020, the exchange mentioned that it would be following the launch of its options for BNB and LINK along with similar contracts for Tezos (XTZ), Atomic Coin (ATOM), XRP and Litecoin (LTC).
The CEO of Delta Exchange, Pankaj Balani told Cointelegraph that BNB and LINK are the major active coins on the exchange, and in addition to that, with the launch of the new contracts is a response to much inbound interest from traders.
Delta’s approach to crypto options trading
Delta exchange already caters options for Bitcoin (BTC) and Ether (ETH), in the pattern of a designed contract called ‘move’. As per the reports, conservative options are considered to be tradable derivative contracts, allowing market participants to purchase either a right to buy, also called a call option or sell, a put option, a given asset at a specified ‘striker price’. This strike price is calculated on or prior to the contract’s expiration date.
All the Delta’s options serve exposure factors including ‘moneyness’, called the comparison asset’s current price and the strike price, time to expiry, and implied volatility. To know more, always contact the team members via Binance customer care number which is always functional.
Talking of Delta’s Move contracts, it has been designed to allow market participants to specifically trade volatility in digital assets, without taking any directional risk, said by Balani. He further on explained that:
While trading these contracts, a trader is targeting on the absolute value of the price of the coin instead of the coin value going up or down. Balani previously explained in an interview with Cointelegraph that the contract is a blend of a call and a put option, therefore, intended to make it conveniently for understanding for non-professional traders. Talking about fees, it currently charges for ETH and BTC Move contracts, the exchange will be taking a 0.05% rate on the contract. The BNB and LINK are weekly contracts and provide up to 10X leverage.
Strong precedent for crypto options in the industry
Pankaj Balani said that Delta is expecting close to $4 million worth trading on BTC Move contracts and about $2 million in ETH Move contracts regularly. As per reports, many other industry platforms that include OKEx, FTX, and Binance has introduced many types of options contracts for crypto traders in recent months.
In January 2020, Chicago Mercantile Exchange (CME) Group introduced Bitcoin futures options, following the International Exchange (ICE’s) digital asset platform Bakkt introduced its first regulated BTC options in the United States. To be updated about Binance news and updates, you can always call on Binance customer care number which is always functional to assist. The team is always there to handle all your worries and fix all types of problems in nick of time. Connect with the team anytime to have quality-driven remedies that are easy to execute.