BIT, a crypto exchange aimed at professional traders, has announced the launch of XRP options trading.

Originating in August 2020 as a spinoff from Matrixport, a notable crypto financial service company, BIT has consistently showcased its commitment to enhancing the trading experience for its users.

For those unfamiliar, BIT, which was launched in August 2020 as a spinoff from Matrixport, offers an array of products, including:

  • Crypto Options (USDC-margined): A form of derivatives trading where traders can speculate on the future price movements of cryptocurrencies.
  • Perpetual Contracts: A type of futures contract without an expiry date, allowing traders to hold positions indefinitely.
  • Spot: Traditional cryptocurrency trading where assets are bought or sold at current market prices.
  • Convert (Swap): Allows users to exchange one cryptocurrency for another.
  • Rebalanced Market Making (RMM): A trading strategy that aims to capitalize on price differences in different markets.
  • Block Trades: Large trades that are privately negotiated and not placed through the open market.

Options trading stands apart from traditional spot trading. It provides traders the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific period. This form of trading offers increased strategic flexibility, allowing traders to hedge against potential losses, speculate on price movements, or diversify their investment portfolios. However, the intricate nature of options trading means it might not be the best fit for every investor.

In its press release, BIT called XRP “the native token of the open-source, energy efficient and decentralised XRP Ledger (XRPL),” and said that XRP “now stands as the sixth token available for options trading on the BIT platform, following BTC, ETH, ADA, TON, and LADYS.”

BIT also pointed out that the landmark ruling by Judge Torres on 13 July 2023 “marks a major milestone for Ripple and has undoubtedly sparked renewed interest and optimism in the XRP market.”

Apparently, the initial liquidity is “being provided by OrBit Markets,  an institutional liquidity provider of options and structured derivatives in digital assets.”

Justin Buitendam, BIT’s Global Head of Institutional Sales said: 

“We are proud to become one of the first exchanges making XRP options trading accessible to both institutional and retail traders, enabling long and short for options traders at the same time. We look forward to bringing this product to more traders and investors alike across the globe”.