As a seasoned crypto investor, I’m always on the lookout for new opportunities and tools that can help me maximize my returns. The recent partnership between BitMEX and PowerTrade to introduce options trading to the BitMEX platform has piqued my interest.
As a crypto derivatives analyst, I’m excited to share that BitMEX, a well-known player in the industry, has recently formed a partnership with PowerTrade to introduce options trading on their platform. This strategic move positions BitMEX to challenge Deribit and capture a significant market share within the niche options trading segment.
BitMEX Rivals Deribit
As a crypto investor, I’ve heard the exciting news from Stephan Lutz, the CEO of BitMEX. He announced that our preferred exchange aims to achieve a trading volume of at least half a billion dollars within the next three months. In line with this ambitious goal, BitMEX intends to introduce options trading in all regions where the platform is currently operational.
“At the forefront of derivatives exchanges, we aim to provide BitMEX users with the most effective tools to enhance their capabilities and trading approaches. Be it risk management through hedging, strategic positioning, or profiting from increased volatility, our goal is to support your objectives.” (Luz remarked.)
Since 2020, Deribit has held a significant dominance in the Bitcoin options market, accounting for approximately 70% or $35.7 billion of the total $51.1 billion trading volume in April. While other major crypto exchanges like Binance and OKX have made efforts to challenge Deribit’s market position, as of now, BitMEX is also a notable competitor.
To date, the interactions between the two platforms, OKX and Binance, have yielded only modest results. In the previous month, OKX accounted for approximately 16%, or $8.4 billion worth of trades in total volume. Conversely, Binance reported a 9% share, which equates to around $4.8 billion.
As an analyst, I’d rephrase it as follows: I, as an analyst, would express that BitMEX announced its options trading platform will cater to a comprehensive selection of institutional-quality options for digital assets such as Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Binance Coin (BNB), Dogecoin (DOGE), and Solana (SOL). The company intends to expand its offerings in the future to encompass an even broader range of cryptocurrencies.
Mario Gomez Lozada, the CEO of Power Traded, expressed his views on the collaboration. He noted, “PowerTrade’s trader-focused options solution is now integrated into BitMEX’s platform. This union brings together PowerTrade’s offerings and BitMEX’s extensive liquidity and unmatched dependability. As a result, traders can easily access top-tier financial products with uninterrupted performance.”
BitMEX Crypto Options Trading Strategy
I analyze the company’s strategy, which initially centers around providing customers with free opportunities for options trading in May. Furthermore, there are monthly trading competitions, rewards linked to trading volume, and incentives for referral trading volume. Consequently, the first 1,000 new options traders will receive a $20 onboarding bonus as a welcome gesture.
After the end of BitMEX’s zero-fee promotion for options trading, the fee structure will adopt a pricing model similar to that of its spot trading. Luz announced this confirmation and added that the exchange will supply instructional resources like fundamental guides, strategic examples, and a comprehensive video tutorial for users new to options trading or the BitMEX platform.
BitMEX additionally asserts that it can compete for market leadership by providing a simple and strong platform for options trading, featuring an order book and RFQ system, which minimizes counterparty risk.
As a researcher investigating the world of derivatives trading, I can explain that RFQ, or Request for Quotation, is a common method used in electronic markets for traders to obtain price quotes and execute transactions on various options strategies. This can range from simple single-leg trades, such as purchasing a call option, to more complex multi-leg trades, like buying a call and selling a put simultaneously. Notably, there are no minimum restrictions associated with RFQ, making it a flexible tool for traders.
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2024-05-08 20:01