OKEx is adding cryptocurrency options to its existing offerings of spot and futures trading.
The Malta-based exchange said Monday that simulated options trading will commence on Dec. 12, with live trading kicking off on Dec. 27. Both buy and write options will be provided.
To cut the risk of manipulation of closing prices, OKEx said it averages spot data from a number of platforms to get a "fair" settlement price for its options products.
"The options mark price is determined by OKEx in real time using the Black-scholes pricing model. Since a single transaction or quote cannot affect the options market – which only responds to estimated options volatility," the exchange said.
To get trading, platform users will have to complete a "suitability test" to show an understanding of the options products, as well as pass know-your-customer verification.
“Options is a unique instrument that enable traders to manage, price and hedge the volatility of crypto assets with a combination of option contracts," OKEx CEO Jay Hao said. "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.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.