Cryptocurrency exchange OKEx announced that it will launch crypto options trading on Dec. 27.
On Dec. 9 a press release was shared by OKEx stating that the addition of options makes OKEx the “first crypto exchange to offer C2C, spot, futures, perpetual swap, and options trading under the same roof.”
NEW LAUNCH: Another big news! We'll soon launch Options Trading on #OKEx. Starting from Dec 12, join our Simulation Trading Contest & share rewards up to 150,000 $USDT 🏆🎉 Sign up now: https://t.co/49FXHQaskH pic.twitter.com/6E9230vgRU — OKEx (@OKEx) December 9, 2019
Upgrading The Entire System To Implement Options Trading
The firm reportedly upgraded its entire system and infrastructure, including the addition of an anti-price manipulation system in order to implement options.
The option price is determined in real-time by employing the Black-Scholes pricing model, which considers volatility, option type, underlying asset price, time, strike price and risk-free rate.
OKEx CEO Jay Hao commented:
“Options is a unique instrument that enable traders to manage, price and hedge the volatility of crypto assets with a combination of option contracts. It also gives a trader the ability to take advantage of more than just market direction. As the crypto market evolves, we aim to build a complete derivatives product suite, delivering solutions to optimize users’ trading strategies.”
Users wanting to access OKEx’s options trading service must undergo ‘Know Your Customer’ procedures and pass a suitability test proving that they understand the products they are buying.