Crypto
Derivatives
Exchange

Make bets on volatility of BTC or ETH, hedge cryptocurrency exposure, and trade like a pro with portfolio margin

What is Derivatives Trading?

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets such as an index. The derivative itself is a contract between parties, which derives its price from fluctuations in the underlying asset.

Derivatives allow traders to structure bespoke payoff bets on underlying instruments, without necessarily owning the actual assets. Investors typically use derivatives to hedge underlying positions, make use of increased leverage, and speculate cheaply (with option premiums typically low compared to notionals) on the underlying price movements.

Derivatives allow crypto traders to express bullish and bearish views on spot cryptocurrency as well as apply non-directional strategies, such as bets on volatility of the underlying asset, by using combinations of options and futures positions on ETH and BTC. In most asset classes the derivatives market greatly exceeds spot in volume, while in cryptocurrency it is still maturing, hence it represents a great opportunity to jump on the bandwagon and reap the benefits of expressing your view correctly or exploring arbitrage opportunities.

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Redot Exchange

Redot is built for both individuals and institutions with its fast cross-platform infrastructure for trading of crypto and cryptocurrency derivatives. Advanced web-based widget interface as well as smartphone apps are available for trading on the go.

Redot ensures nearly 24/7 uptime and enables HFT throughput via FIX and REST API, supporting a redundant server-failure-proof infrastructure. The platform is microservice-based, providing independence of modules giving the system further resilience.

Margin rates are based on market factors such as volatility which are recalculated in real time and provide fair requirements while allowing high-leverage to maximize market exposure and returns.

Types of Crypto Derivatives

In the crypto derivatives market, there are a variety of instruments. Among them are the following:

Futures: A contract that lets two entities agree on exchanging a certain asset at a specific time and price rather than buying it on the spot market. When the time elapses, the parties are required to buy or sell the token at the predetermined price (even if it is at a loss for one party).

Options: options are like futures, except that there is no commitment to buy the assets when the time expires. To make it profitable, the buyer pays a premium that can be forfeited if the token's price falls short of his expectations. The seller keeps the premium and his token if the buyer chooses not to pursue the agreement.

Perpetual: They can be explained as “non-expiring” futures agreement. In general, they are kept as close as possible to the spot price, but in reality, they can be higher (positive funding rate) or lower (negative funding rate) than the spot price.

Redot — The Best Platform For Crypto Derivative Trading

Redot.com will soon have a derivatives exchange soon, including Bitcoin and Ethereum derivatives. Finishing touches are being applied to guarantee that savvy traders get the best possible platform. As with the Redot spot market, the cryptocurrency derivative exchange will hold the equivalent security standards and powerful features to accommodate to institutional and professional traders.

Crypto Derivatives Exchange