Bybit, one of the fastest-growing crypto exchanges in the world, announced on Monday, September 5th, that it had launched cryptocurrency options for Ether (ETH) and Solana (SOL) contracts.
This latest development comes after the crypto exchanges introduced its first-in-market, USDC-settled Bitcoin (BTC) contracts a few months ago.
According to its press release, Bybit said its latest ETH and SOL options contracts represent an important step in developing more ways for users to increase their trading experience level in the cryptocurrency market.
As a way to celebrate the launch of the futures contracts, Bybit said it is offering up to 66% off trading fees for 30 days if a user registers before October 4th, 2022.
Commenting on this latest development, Ben Zhou, co-founder and CEO of Bybit said;
“Our users asked, and we answered. After the inauguration of our first-in-market, USDC-settled options earlier this year, adding ETH and SOL contracts was the natural next step. Our options platform is already a major competitor in the crypto trading helped by Bybit’s deep on-screen liquidity, minimal slippage, and robust >100K TPS trading capacity/matching engine.”
Following the launch of these USDC options, Bybit said its users can now trade ETH, SOL, and BTC options and perpetuals through portfolio margin, which adopts a risk-based model for experienced traders, including market makers and institutional clients, for optimized capital efficiency.
Bybit added that it is the first crypto exchange to build options contracts that are margined and settled in USDC. The exchange’s users can now settle and trade with more certainty and ease without needing to own the underlying crypto asset. They are European-style cash-settled options, which can only be exercised when the contract expires, Bybit added.
An advantage of using these contracts is that there is no need to hedge the underlying collateral exposure as USDC is pegged to the value of USD, and is therefore not subject to the volatility often associated with other cryptocurrencies. Furthermore, all profits would be calculated in USDC, making it easier for traders to benchmark and calculate returns.
Bybit said with options contracts, traders can speculate on the future price in USD of an underlying asset and settle their trades in USDC. Unlike a futures contract, where the transaction is mandatory and has to be completed at the settlement date, options contracts are optional and will expire without a transaction if the price on the settlement date is deemed unfavorable. The risk of options trading is, therefore, relatively low for traders because the maximum risk is determined by the premium paid.
The cryptocurrency exchange has become the one-stop gateway for USDC-settled options. Bybit’s market-beating liquidity is matched with features such as portfolio margin, which lowers margin requirements on hedged positions, and unified accounts that accept BTC/ETH/USDT as collateral. Bybit said;
“The system uses a risk-based margin requirement that is aligned with the general risk of an entire portfolio. It increases capital efficiency by deploying profits from winning positions to offset the losses of losing positions in the same portfolio.”
Bybit is a cryptocurrency exchange that was launched in 2018 and offers a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service and multilingual community support.
The low Bybit fees make it one of the fastest-growing cryptocurrency exchanges at the moment. Furthermore, Bybit reviews have generally been positive, as the exchange has provided traders with the necessary tools to trade successfully.
The crypto exchange is a proud partner of Formula One racing team, Oracle Red Bull Racing, esports teams NAVI, Astralis, Alliance, Virtus.pro, Made in Brazil (MIBR) and Oracle Red Bull Racing Esports, and association football (soccer) teams Borussia Dortmund and Avispa Fukuoka.