Delta, crypto derivatives exchange platform, has recently announced new futures trading options for two of the major altcoins in the market, Solana, and Cardano. The derivatives exchange will provide investors with new access points to the leading altcoins, and a new method of gaining exposure to the market by launching futures trading options.
Through options, owners of securities can buy or sell a specific security at a specified price within a limited time period established prior to the exchange. Call and put options were used widely in traditional financial markets and stock exchanges, but recently these options became more prevalent within crypto markets as well, and have entered the mainstream.
It should also be noted that options do not provide owners with the obligation of security, but instead the right to buy or sell them. Traders have the right to buy or sell securities, but they are not obligated to do it.
The call and put options of Solana and Cardano crypto assets will have daily maturity rates during the initial rollout. At later dates, the crypto options will have weekly and monthly maturities that will soon be implemented.
Delta exchange platform has already been providing options trading for some of the major crypto assets in the market, including the leading cryptocurrency Bitcoin, followed by Ethereum, XRP, Bitcashpay, and Binance Coin. In a previous report, the derivatives exchange had launched several options products last year in 2020.
It is evident that the derivatives market has grown exponentially this year. Research reports show that by the end of 2020, derivatives had accounted for 55% of the total crypto market. The growth of derivatives platforms such as FTX, Bybit, and Delta exchanges implies that that derivative may indeed account for a much larger percentage of the overall crypto market.
This year in 2021, derivatives gained more attention in the market due to trader’s sentiment and defiance against regulatory crackdown from financial authorities around the globe. Major crypto exchange, Binance, has recently announced that they will no longer provide Hong Kong users with the options to trade in derivatives due to the pressure from local regulatory agencies.
The United States Commodity Futures Trading Commission voiced came forward with the proposal of reinforcing crypto-based derivatives trading across borders.
Options trading gained significant attention in August due to massive crypto rebounds, with an open interest of investors in Bitcoin options.