Deribit Introduces Linear Options for SOL, XRP, MATIC

Leading cryptocurrency derivatives exchange Deribit has declared that it is adding linear options for Solana (SOL), XRP, and Polygon (MATIC) to its portfolio of products.

#Deribit is launching linear options for #SOL, #XRP, and #MATIC! “Based on demand from our clients, we chose to expand our offerings with some key altcoins; SOL, MATIC, and XRP,” says Deribit CCO @LStrijers Read more — Deribit (@DeribitExchange) February 8, 2024

In October, Deribit committed to adding options for Solana (SOL), XRP, and Polygon (MATIC) to its product line. Chief Commercial Officer Luuk Strijers of Deribit said via email, “Based on demand from our clients, we chose to expand our offerings with some key altcoins; SOL, MATIC, and XRP.”

Strijers continued that the derivatives trading platform is a natural fit for the introduction of USDC-based altcoin options. “There is now over 85% of open interest for bitcoin and ethereum options on Deribit,” he said.

Deribit is probably referring to a particular kind of options contract that has a direct, or “linear,” relationship between the option’s price movement and the price movement of the underlying asset when he uses the term “linear options” about bitcoin derivatives trading.

This implies that there is a clear correlation between the value of the option contract and the price of the underlying cryptocurrency, such as Solana (SOL), XRP, or Polygon (MATIC). 

Deribit’s linear options would free traders from the complications that frequently accompany traditional options trading and enable them to speculate on the future price movements of these altcoins or hedge their positions in them. 

The payout would be directly correlated to the actual price movements of the underlying assets. Traders searching for simple, understandable trading tools in the erratic Bitcoin market may find this very intriguing.

Deribit had a significant increase in activity in January, reaching $83.3 billion in turnover, its highest level since May 2021. Furthermore, the exchange announced that in January more corporate accounts were trading in a single month than at any other time in history.

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2024-02-08 18:12