Revocable contracts for the sale or purchase of financial asset appeared on the cryptocurrency market for the first time.
Delta Exchange today announced the launch of turbo options for Bitcoin. These instruments, also known as revocable contracts for the sale or purchase of a financial asset, appeared for the first time in the cryptocurrency market. Starting today, traders can open put and call tubro options on Delta Exchange with 1: 200 leverage. The trigger price for these bitcoin options will be 0.5% below the spot price, and the mandatory recall feature gives the seller the right to withdraw the option if the price reaches the trigger value. Initially, turbo options will be redeemed daily. The company then plans to add weekly and monthly contracts. “In traditional markets, turbo options have become incredibly successful because they provide traders with the opportunity to exploit the growth potential of underlying assets with minimal risk,” said Pankaj Balani, CEO of Delta Exchange. "By introducing these exotic new opportunities to the crypto industry, we hope to increase open interest and increase participation in Bitcoin options trading."
These options combine vanilla call / put options with a trigger that lowers the price of the turbo option, giving the seller the right to withdraw the option if the price reaches a certain value. "Turbo options are primarily products targeted at retail traders," Balani explained. “They provide retail traders with the opportunity to harness the growth potential of bitcoin without risking large sums. However, it should be understood that these are exotic derivatives, and traders should be sure to understand all the risks involved. ”
$ 24 billion passes through the cryptocurrency derivatives market every day. Crypto derivatives cover over $ 24 billion. Bitcoin remains the market leader: in September, in the last week before the options expire, the daily trading volume set a new record, breaking the $ 2.14 billion mark. Given that open interest in Bitcoin options has exceeded 130,000 contracts, the Bitcoin turbo options offered by Delta Exchange could stimulate market activity.