Bybit adds crypto options trading, begins with USDC and perpetuals contracts

abdelaziz Fathi

Cryptocurrency exchange Bybit has rolled out trading on USDC options and perpetuals contracts as the influential platform expands its crypto derivatives offering.

Bybit

The new product addition will help traders take advantage of volatility, hedge risk and discover prices through options, which are generally simple and have no special or unusual features.

For investors interested in this new trading vehicle, Bybit options contract follows the European-style options, which may be exercised only at the expiration date of the option, i.e., at a single pre-defined point in time. It can be traded 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.

The roll-out of options product, quoted in dollar-backed stablecoin USDT, came on the heels of a trial period which examined common feedback in order to improve the user experience of optimization of margin and risk control mechanisms.

Bybit’s new options trading offering is based on user feedback, and upon launch users will be able to trade USDC options and perpetuals, it says.

This function will support Bybit 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.

Bybit added copy trading feature

As more sophisticated investors enter the crypto market, the notice reflects increasing investor interest in trading derivatives, which let traders make bets on the price of cryptocurrencies without the need for actual delivery.

Both futures and options are a way for investors to bet on the trends of a cryptocurrency price without having to actually hold the underlying coin, which skirts regulatory and custodian issues. However, futures are, in general, riskier than options as the only financial liability for the latter is the premium paid at the purchase time. On the other hand, futures contracts involve maximum liability.

“Options is something that our existing clients have long been asking for since there has been no other revolutionary product offered in the market at the moment,” said Ben Zhou, co-founder and CEO of Bybit. “We are confident that our state-of-the-art offering will set the bar for the sector and normalize crypto options trading, just like what Robinhood did for stock options. We are also excited to bring with us to options trading the world class liquidity and reliability our clients have come to associate with Bybit.”

Bybit has been an integral participant in the continued mass adoption of cryptocurrency investments, and the launch of options trading is yet another milestone. The move also comes as the popular exchange continues to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of Bybit’s business, the popular platform added spot crypto trading and a copy trading feature as it aims to aggressively grow their user base.

 

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<