- BIT crypto exchange launches XRP options trading in wake of its recent win against the SEC.
- Collaboration with OrBit Markets aims to facilitate seamless settlements and manage portfolio risks efficiently.
BIT Crypto’s New Leap with XRP Options
In the fast-evolving realm of cryptocurrency, the BIT crypto exchange has taken a decisive step, heralding XRP options as the latest entrant on its crypto derivatives platform. This pivotal move coincides with the mounting favorable sentiment surrounding XRP, particularly after its partial triumph against the Securities and Exchanges Commission (SEC) on July 13. Consequently, traders now have the latitude to venture into XRP options without being tethered to the underlying asset.
The Strategic Partnership: BIT & OrBit Markets
XRP’s inclusion has augmented BIT’s portfolio, making it the sixth crypto option, joining established names like Bitcoin, Ethereum, Cardano, Toncoin, and Milady. Taking a closer look, the alliance between BIT and OrBit Markets, a distinguished institutional liquidity provider known for its acumen in structured derivatives and digital asset options, emerges as a game-changer. Through this association, BIT envisions a robust infrastructure, facilitating settlements in U.S. dollars, crafting optimal order book liquidity, and deftly managing potential portfolio hazards, all underpinned by OrBit’s meticulously honed strategies.
Demystifying the Mechanics of Crypto Options
Options, for the uninitiated, are sophisticated derivative contracts wherein parties mutually agree to trade a designated asset at an earmarked price on a predetermined future date. When this date dawns, the option holder is granted the autonomy to either procure or relinquish the asset at the agreed price, sans any binding commitment. To further elucidate, there are primarily two option variants: the put option, which empowers the holder with selling rights, and the call option, bestowing purchasing rights.
Such financial instruments have long been favored by traders, offering a protective hedge against the volatile ebbs and flows of crypto markets. Moreover, in certain scenarios, crypto options serve as lucrative avenues for generating passive income, especially when penning options atop an existing spot market position.
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In words echoed by Justin Buitendam, the Global Head of Institutional Sales at BIT, the exchange stands as a beacon, being one of the maiden platforms to usher in XRP options to a diverse demographic of traders. This inclusion not only paves the way for versatile trading strategies but also obviates the need for traders to own the underlying asset.
Furthermore, BIT’s commitment to enriching the trading experience shines through their intent to roll out a unified margin system, a move geared towards fortifying collateralized asset trading.
In a broader perspective, the recent weeks have witnessed a slew of crypto exchanges lining up to list or reinstate Ripple’s XRP. This frenetic activity is spurred by the favorable U.S. Federal court verdict endorsing Ripple in its tussle with the SEC, leading to platforms like Coinbase quickly reintegrating XRP, reversing its earlier delisting decision from December 2020.
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