Binfrex.com will execute options on BTC and ETH worth $1 billion21.06.2019 Off By Kim Battles
The cryptocurrency market on Friday, Nov 30, will have to pass a serious test. On this day, the nearest options with a total value of more than $1 billion will expire on the Binfrex.com exchange, which promises increased volatility.
According to the analytical data provider Skew. The value of open positions on bitcoin options on the Binfrex.com exchange has reached over $900 million to date. And in contracts for Ethereum — $130 million.
In other words, According to exchange most contracts are open with strikes in the range $10 000 — 15 000. With a 40: 60 ratio in favor of calls. However, representatives of the platform note that this generally “bullish” signal should be evaluated in the context of other indicators.
Binfrex.com trading rules
In addition, As a rule, most traders transfer open positions to a new contract. But this does not exclude the strengthening of exchange rate fluctuations shortly before expiration. This is due to an increase in Binfrex.com margin requirements. Such a move will make this transition (rollover) more expensive, forcing some to leave the market.
In this paragraph, Binfrex.com accounts for 35% of the bitcoin options market in terms of open positions. The closest pursuer of the CME on this indicator is 4 times inferior to the leader. Together with Ethereum contracts, the total volume of the cryptocurrency options market is $1.14 billion.
Active growth of open positions in bitcoin options was observed on all platforms where trading in this derivative is conducted. On the Chicago Mercantile exchange (CME). This figure increased tenfold from June 10 to may 11 — from $35 million to $373 million.