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.
Bitcoin and Ethereum
Market Maker Support
Redot meets the needs of market makers and institutional traders alike with its redundant microservice architecture meant for nearly constant uptime, and commission rebates. It supports a variety of basic and exotic order types, and is able to facilitate large OTC blocks upon request.
Unified Collateral Pool
You can deposit any assets as collateral and use that buying power to trade any other assets. SPAN portfolio margin accounts for hedged or offsetting positions.
Long & Short Positions
Both long and short positions may be opened in any instrument available on most liquid assets – Spot, Futures, Perpetual Futures, Options & REPO. Shorting spot is facilitated via REPO lending with order book driven interest rates.
Redot allows users to maximize market exposure with upwards of 100x leverage. User positions are scanned on an intra-second basis to determine maximum amount of leverage possible while portfolio positions are calculated holistically - an approach extremely beneficial for arbitrageurs.
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.