On Dec. 26 a press release was shared by the exchange, OKEx currently ranks as the third-largest by daily trading volume globally while indicating that the new contract will be settled daily in Bitcoin (BTC).
#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
The crypto exchange states that the Bitcoin options contract will be based on the Black-Scholes pricing model a valuation algorithm that had been the basis for the pricing model of options on traditional assets since the early 1970s.
Contract Will Use Real-Time Data
The contract will use real-time data and reportedly being introduced as part of a revamp of the platform’s entire trading infrastructure. The Malta-based crypto exchange adds that the introduction of options alongside existing margin trading, futures, and perpetual swaps markets will diversify the trading and hedging strategies available to OKEx users.
Lennix Lai, financial market director of OKEx said:
“Options are a unique instrument that enables traders to manage, price and hedge the volatility of crypto assets […] to take advantage of more than just market direction. We welcome clients from different segments, especially from our institutional clients, who have shown the fastest-growing demand in derivatives trading, especially on futures and perpetual swaps.”
The public accessibility for the new options contract will be available on January 9. 2020.