- BIT first exchange to offer Cardano (ADA) options contracts
- Cardano (ADA) is one of the top 10 digital asset
- Trading profit and losses to be calculated in USD
Dubai - June 21, 2023 – BIT Crypto Exchange, a leading professional digital asset exchange, has launched Cardano (ADA) options trading expanding its altcoin options offering. This move positions BIT Crypto Exchange as the first exchange to offer Cardano (ADA) options contracts.
ADA is the fourth cryptocurrency available for options trading on BIT’s platform following Bitcoin, Ethereum, and Toncoin. This launch marks an important step in establishing more ways for individual traders and institutional clients to trade on BIT.
Launched in 2017, Cardano is a representative of the third generation blockchain, following Bitcoin and Ethereum, which were the first - and second - generation blockchains. Cardano aims to solve infrastructure problems related to scalability, interoperability, and sustainability on cryptocurrency. Its token ADA, has been one of the top 10 in market capitalization for multiple years.
Cardano is hailed as the greenest and most sustainable platform, driving the blockchain ecosystem toward a greener future. In its recent weekly report, Cardano's achievements include launching 127 projects, generating 8.28 million native tokens, and executing 8,277 Plutus scripts. The platform currently hosts 1,242 active projects, processing 66.7 million transactions and 73,880 token policies. Cardano is leading the way with its sustainability, innovation, and impressive development activity.
Justin Buitendam, Global Head of Institutional of BIT, expressed his pride in being the pioneer in introducing ADA options to the market. Buitendam stated, "This accomplishment validates BIT's ability to promptly incorporate altcoin options, leveraging USD as collateral. We are delighted to contribute to the flourishing options market and provide our traders with a broader selection of innovative financial products."
Crypto options trading is a fast-growing segment of the digital asset trading market that is expected to grow rapidly in the coming years. It provides investors with a relatively low-cost and low-risk way of trading digital assets. Options are a type of derivative contract that gives its buyer the right, but not the obligation, to buy or sell an underlying asset at a set price on or before its expiration date. Options, like other crypto derivatives, allows traders to manage their exposure to, and speculate on the future price of, digital assets. The digital asset-based derivative, including crypto options trading, has experienced exponential growth in recent years.
With the launch of ADA options, ADA investors and holders can now enhance their trading strategies and hedge their portfolios by selling calls or other combinations of strategies. It also empowers asset managers to offer various structured products using ADA as the underlying asset.
As the first exchange to offer crypto derivatives denominated and settled in USD, BIT enables users to trade ADA options without necessarily holding the underlying assets. Additionally, all profits and losses will be calculated in USD, making it easier for users to assess performance and calculate returns.
Trades on BIT can also benefit from its advanced risk management and fund efficiency features, supported by the unique portfolio margin and unified margin systems. The portfolio margin system evaluates risk exposure at the portfolio level by estimating potential losses resulting from predefined market conditions. This enhances capital effectiveness and reduces margin requirements for hedged positions. The unified margin system is an upgraded trading margin system that provides a unified account, allowing users to utilise all assets in their account as collateral for trading various products. At the moment, ADA’s haircut ratio is 15%, meaning users can use their ADA as collateral and trade options at a 15% discount.
BIT is a full-featured cryptocurrency exchange that is designed for use by professionals, with advanced risk management and fund efficiency supported by Portfolio Margin and Unified Margin.
BIT was launched in August 2020 as an affiliate to Matrixport, a prominent crypto financial service company. BIT is one of the top crypto options trading platforms which offer innovative USD-margined trading pairs.