The cryptocurrency derivatives trading platform Delta Exchange today offered options for two major altcoins – Binance Coin (BNB) and Chainlink's LINK.

In a letter dated June 19, the exchange indicated that this would be after the launch of BNB and LINK options with contracts similar to Tezos (XTZ), Atomic Coin (ATOM), XRP and Litecoin (LTC).

Delta Pankaj Palani told Cointelegraph that BNB and LINK were the most active currencies on the exchange, and that the launch of the new contracts was caused by the “great interest of traders”.

Delta approach for cryptocurrencies
Delta already offers alternatives to bitcoin (BTC) and ether (ETH) in the form of a specially designed contract called “Transfer”.

As mentioned, the normal options are tradeable derivative contracts that allow market participants to buy either the right to buy (sell option) or sell (sell option) this asset at the “strike price”. The strike price is determined at the end of the contract.

Therefore, alternatives provide exposure factors that include “money” (the current price of the asset compared to the price of the execution), expiration time, and implied volatility.

According to Blaney, from the point of view of Delta Move contracts, it was designed so market participants could specifically trade volatility of digital assets, “without taking any directional risks.” He explained that:

“When trading these contracts, the trader is betting on the absolute value of the price movement of the currency, and not on raising or lowering the currency.”

As Balani mentioned previously in an interview with Cointelegraph, the contract is actually a conversation and a selling option, and is therefore designed to facilitate the understanding of non-professional (retail) traders.

According to the commission currently required for ETH and BTC Move contracts, the exchange rate charges 0.05% for the contract.

BNB and LINK weekly contracts provide leverage of up to 10x.

A strong precedent for cryptocurrencies in the industry
Al-Balani said that Delta saw nearly $ 4 million in BTC Move contracts and about $ 2 million in ETH Move contracts daily.

In recent months, many other industry platforms, including OKEx, FTX and Binance, have launched various types of encryption options.

In January, the Chicago Mercantile Exchange Group (CME) launched future Bitcoin options, after the Bakkt Intercontinental Exchange (ICE) digital asset platform, the first structured BTC options launched in the United States.

Source: CoinTelegraph