2020-2-17 21:32 |
The Deribit Exchange specializing in crypto derivatives has launched daily Ether (ETH) options, an announcement from Monday and made on Twitter says.
Our #Ethereum daily options are launching today at 12:00 UTC pic.twitter.com/U44BQoASFc
— Deribit (@DeribitExchange) February 17, 2020
The strike price intervals for the new product will be $5. Their expiring date will be every day at 08:00 UTC, so traders will only have a window of 24 hours for trading. As far as their trading lifetime goes, this will be 2 days when introduced. Starting with February 19, Deribit will also scale back the tick size for all options, said Andras Caron, Deribit’s CMO. This means the size will be cut back from 0.001 ETH to 0.0005 ETH.
Deribit Volumes Raised Considerably as a Result of ETH Prices IncreasingDeribit also launched longer duration options settled in cash, in late March of last year Ever since, it has traded a $1.9 million average daily volume. The exchange’s volumes have risen considerably when the ETH prices have increased, so on February 13, Deribit had a record volume of $13 million in 1 day. ETH has recently reached its 7-month $290 high and gained almost 100% until now, for this year. The derivatives space has been very heated in the last few months, seeing huge names such as Intercontinental Exchange’s Bakkt and Chicago Mercantile Exchange (CME) have launched options on Bitcoin (BTC).
Deribit Remains a Leader in Options VolumeDeribit is based in Panama and continues to remain superior as far as options volume. According to Skew, Deribit has handled almost ninety percent of the worldwide volume since January 28. Deribit's launch of the daily ETH options arrives just 2 weeks after the daily BTC options went live. This is what Caron had to say about what daily options have to offer users:
“Daily options only have one or two days remaining lifetime and thus lower time value or premium and thus [are] cheaper. These shorter-dated, cheaper options are great instruments to use for short term strategies enabling the trader to hedge events or benefit from expected short term moves.”
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