Categories: CryptoNews

Quedex offers Bitcoin-centric Futures and Options Tailored To Crypto Traders

With the recent introduction of CBOE and CME Bitcoin futures to allow institutional traders some exposure to Bitcoin, Quedex looks to be the cryptocurrency counterpart, offering Bitcoin futures and options on a Bitcoin-centric platform.

Disclosure: This is a Sponsored Article

Quedex is different because traditional Bitcoin derivatives are products for those that want to be insulated from Bitcoin on a regulated fiat exchange. One big difference is that while traders are at a permanent risk when in a short CME future position, Quedex short sellers will never get margin called if they are fully collateralized, since the platform operates 24/7.

Quedex differs from offering a full range of Bitcoin-denominated derivatives focused to the crypto economy, as well as security and risk management to match.

Quedex stores all bitcoins in offline vaults, with all withdrawals checked manually and secured by multi-signature technology, where numerous keys are required to approve of a transaction.

Qudedex’s website states that they utilize a 3 of 5 multi-sig wallet, with different people in the company (no external party holds a key) holding one key. PGP is used for end to end encryption on orders as well as messages, on both the web app and the API to ensure the utmost security for users.

Since Quedex offers up to 25x leverage for margin traders, it has implemented a risk management system. Quedex calls this system an “innovative auction-based bankruptcy prevention mechanisms”, that makes negative balances impossible.

Related Post

Options are arguably the more attractive offering, since futures only allow traders to speculate on the price. Options allow the trader to simultaneously protect themselves from downside risk, and preserve profit potential in both bull and bear markets.

Quedex bitcoin options have even more potential to be the hedging tool of choice for the bitcoin miners, as buying a put option allows them to fully retain the growth potential of bitcoin and without touching fiat money.”, Matt Wywial explains.

While options have been available in Bitcoin since 2011, the experience hasn’t been consistent, causing frustration and hesitation from traders to delve in the derivatives market. Quedex looks to solve this by offering a stable platform on which to use options:

“It is very important that the options are consistent with the prevailing inverse futures standard. Only that way active traders can easily hedge their option positions with futures or apply put-call parity in options arbitrage”, Matt Wywial, Cofounder of Quedex, explained.

“Quedex is the first one to offer bitcoin-denominated futures and options consistently, each with $1 notional amount”.

Quedex is currently offering free trading until January 31st, 2018, maximizing profits on margin trades, allowing traders to make the most from longs or shorts from volatility.

Quedex looks to be regulated under Blockchain & DLT regulations starting in January, and is located in the European Union member state of Gibraltar, which is very friendly to Bitcoin and Blockchain operations. Despite this, account creation is still extremely simple and intuitive.

Guest

The writer of this post is a guest. Opinions in the article are solely of the writer and do not reflect The Merkle's view.

Share
Published by
Guest
Tags: Quedex

Recent Posts

As Bonk (BONK) and Pepe (PEPE) Shine, Rollblock (RBLK) Captures the Market’s Attention With Upcoming Reveal

Meme coins are back with a bang and are as insanely volatile as ever! Bonk…

30 seconds ago

2024’s Top 9 Crypto Staking Platforms to Make Passive Income

Staking has become one of the most effortless ways to generate passive income in the…

3 hours ago

Qubetics, Algorand, and Near Protocol: Best Cryptos to Buy in November 2024

Qubetics, Algorand, and Near Protocol: The Best Cryptos to Buy in November 2024—Which One Is…

14 hours ago

Top 6 Crypto Presales of 2024-2025: Secure Your Long-Term Gains Now

Are you on the lookout for the best crypto presale opportunities to secure your financial…

23 hours ago

XRP and Solana Holders Pile Into This Altcoin Poised For 50x Gains In 2025

The giants of the layer 1 ecosystem including Ripple and Solana, look ready to roll…

23 hours ago

Polkadot Price Shoots Up and Litecoin Turns Bullish! Rollblock Steals the Spotlight as Rising Crypto

The excitement is palpable in the crypto market, as it is entering unprecedented territory. The…

23 hours ago