Why should I trade crypto options on the OKX Liquid Marketplace?

Published on Mar 13, 2024Updated on Nov 29, 20242 min read5

What are the challenges of crypto options trading?

The market infrastructure for crypto options trading is relatively new and is still evolving. Up until recently, traders were still often facing some significant risks, such as:

  • Liquidity issues: only certain coins and exchanged listed strikes and expiries are quoted on exchanges. This can result in wide bid/ask spreads and limit the choices to express a view or hedge a risk.

  • Counterparty risk: options are contracts between two parties, so they come at a risk that the trading counterparty won't deliver.

  • Liquidation risk: options can reduce but also increase exposure to market movements, sometimes in a big way. Traders who don't manage their capital efficiently properly and trade on margin can get liquidated.

Why should I trade options on the OKX Liquid Marketplace?

Our on-demand liquidity network, Liquid Marketplace, offers a powerful solution to these problems. It provides traders with access to deep liquidity, through an execution layer that automates trades and settlements instantly and off the order book. For options trading in particular, it offers:

  • Centralized infrastructure

    • Liquid Marketplace facilitates institutional participation through automated, anonymous RFQs with guaranteed settlement.

  • Risk management

    • Our risk management tools allow you to manage your risk all in one spot – and to avoid the extra counterparty or operational risks of having to move funds around.

    • Pick structures using our position builder, manage risk or try synthetic strategies to better model and visualise your risk.

  • Efficient execution

    • Our execution tool offers an aligned, no conflict workflow for bulk orders or complex multi-leg trades.

    • Our atomic trades tool requires all legs to be set for trade to be confirmed, which minimizes risk.

    • Our state of the art Portfolio Margin tool aims for maximal capital efficiency at all times.

  • Deep liquidity

    • Our large and consistent Delta-1 volumes for many years have proven our ability to perform in the trickiest of markets. This now includes crypto options.

    • At the moment, traders can use coin-margined options for funding.

Disclaimer
This content is provided for informational purposes only and may cover products that are not available in your region. It is not intended to provide (i) investment advice or an investment recommendation; (ii) an offer or solicitation to buy, sell, or hold digital assets, or (iii) financial, accounting, legal, or tax advice. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Information (including market data and statistical information, if any) appearing in this post is for general information purposes only. While all reasonable care has been taken in preparing this data and graphs, no responsibility or liability is accepted for any errors of fact or omission expressed herein. Both OKX Web3 Wallet and OKX NFT Marketplace are subject to separate terms of service at www.okx.com.

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