The former OK core team founded the derivatives exchange "JEX", believing that option products can help users make money in the bear market
The currency market is bearish, and leeks are weak. Everyone is looking for new ways to make money, including high-frequency trading or swing operations, making money by making use of short-term fluctuations; and earning relatively stable fixed income by lending tokens. Recently contacted by OdailyBlockchain Derivatives Trading Platform JEXIt is believed that the introduction of option products in the token market is also one of the opportunities.
JEX believes that the current token trading market has problems such as single product model, lack of leverage and short-selling mechanism. For investors who are pessimistic about the market outlook, option products can be used to sell call options or buy put options to obtain income when the market goes down; for mine owners who want to hold coins for a long time, they can also issue call options To earn a relatively stable income. Since options have the characteristics of limited losses and do not have a liquidation mechanism like futures, Jex believes that options have lower risks and are more suitable for the current unpredictable market.
However, the current digital currency market is not as mature as the traditional financial market, and the issuance of option products may have problems such as insufficient liquidity and high learning costs for investors. In this regard, JEX has made some attempts in product design and operation.
JEX COO Wu Hao introduced that, first of all, when selecting the underlying option,JEX will focus on the liquidity of the currency.The platform now only supports contracts in currencies such as BTC, ETH, EOS, BNB, HT and TRX. The underlying option needs to meet three requirements: there is a trading pair for USDT, trading on a large trading platform, and sufficient liquidity.
The second is that the product design is simple and suitable for ordinary users to participate.After referring to the business model of option products from the traditional financial industry, the JEX platform further simplifies the structure of option products. When each option is issued, the price of the spot market at the time of issuance is used as the strike price of the option, and at-the-money options in both call and bear directions are issued at the same time, and two periods of one week and one month are supported. When users participate in options trading, they only need to choose the trading cycle they want to participate in, and buy options in the direction of price rise or fall that they recognize. Users need to pledge 100% margin to issue contracts, and the leverage may be gradually increased in the future. As for the price of the option contract, it is determined by the price discovery mechanism of the user and the secondary market.
Finally, the platform provides professional option training and trading tutorials for users who participate in option trading for the first time。help centerhelp centerPublish a series of popular science knowledge about options. JEX also provides users with options tutorials including text, comics and parallel options on the official account, and provides option training courses for all new users. In addition to online explanations/answers by professional lecturers, users also You can get a trial account containing 100USDT, and learn options trading methods through real trading. All losses incurred during the trading period of the trial account shall be borne by the platform, and all profits shall belong to the user.
The JEX platform has launched the function of issuing options independently. Users can pledge collateral through the JEX platform, issue option contracts and then sell them in the market. Chen Xin, CEO of JEX, believes that by allowing users to fully participate in every link of option issuance and trading, the fairness of option issuance/pricing and trading is guaranteed. The JEX platform has launched its own platform currency. Holders of the platform currency can enjoy preferential handling fees and serve as collateral for option issuance. The JEX platform will also regularly repurchase platform tokens circulating in the market with fee income every quarter.
Even though JEX is positioned as a derivatives trading platform, users who trade derivatives will also need to trade spot. Therefore, platform transactions also support digital currency spot trading and index trading. It is planned to launch virtual currency futures trading in August. Wu Hao said that the platform will further optimize the design of the mainstream futures business in the market, such as using the forced liquidation line to anchor the spot price, dynamic maximum leverage and dynamic position limit risk control mode, etc., to reduce the risk of trading liquidation. Although the launch of futures products may disperse some option users, JEX believes that it has also cultivated a user base for option products. In addition, the platform is considering launching index and portfolio investment tools in the further future to help users trade.
I am Lu Xiaoming, editor of Odaily. I am exploring the real blockchain. Please add WeChat lohiuming for breaking news and communication. Please note your name, unit, position and reason.
I am Lu Xiaoming, editor of Odaily. I am exploring the real blockchain. Please add WeChat lohiuming for breaking news and communication. Please note your name, unit, position and reason.
