Bybit’s new options trading offering is based on user feedback, representing an important step in developing another powerful tool for Bybit users. Upon launch, Bybit users will be able to trade USDC options and perpetuals through portfolio margin, which adopts a risk based model for experienced traders, including market makers and institutional clients, to increase fund utilization based on the underlying price and volatility.
This function will support the platform in becoming a fully integrated trading powerhouse with a user-friendly interface that provides open API support, to facilitate flexibility in trading European-style, linear options.
Options Trading in Crypto
With options contracts, Bybit users are able to 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 option is not exercised. The risk of options trading is therefore relatively low for traders because the maximum risk is determined by the premium paid while there is no such limit for futures contracts. For sellers, the risk is limitless.
Bringing World Class Liquidity and Reliability to Options Trading
Bybit has proven itself to be the most reliable, stable and usable cryptocurrency exchange of the bull run, offering the best liquidity. Unique among major exchanges, Bybit experienced a 99.99% up rate throughout the year, with 100k/s trading engine throughput and the track record to process 30,000 transactions at its peak.
Liquidity is arguably the be-all and end-all attribute for asset exchanges. Bybit’s derivatives trading platform has the world’s tightest spread and one of the best liquidity. Traders are ensured the best quote and best execution in the market even during extreme volatility.
Bybit’s retail focused products and customer support focused services will help lower the entry threshold to crypto trading to host new users around the world, allowing them to seamlessly enjoy the immediate execution of crypto trades.
“Options is something that our existing clients have long been asking for since there has been no other revolutionary product offered in the market at the moment,” said Ben Zhou, co-founder and CEO of Bybit. “We are confident that our state-of-the-art offering will set the bar for the sector and normalize crypto options trading, just like what Robinhood did for stock options. We are also excited to bring with us to options trading the world class liquidity and reliability our clients have come to associate with Bybit.”
About Bybit
Bybit is a cryptocurrency exchange established in March 2018 that offers a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service and multilingual community support. The company provides innovative online spot and derivatives trading services, mining and staking products, an NFT marketplace as well as API support, to retail and institutional clients around the world, and strives to be the most reliable exchange for the emerging digital asset class. Bybit is a proud partner of Formula One racing team, Oracle Red Bull Racing, esports teams NAVI, Astralis, Alliance, Virtus.pro and Oracle Red Bull Racing Esports, and association football (soccer) teams Borussia Dortmund and Avispa Fukuoka.
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