Deribit, a major crypto options trading platformwill launch futures contracts to facilitate Bitcoin volatility trading, the exchange announced. It will be the first such crypto derivatives instrument in the market and will be priced, margined, and settled in USDC.

The BTC DVOL futures will be based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency across markets. It is calculated by implied volatility

Volatility

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders
Read this Term with a selection of option expiries and strikes on Deribit and provides a 30-day outlook on the expectation of annualized volatility.

The new contract will debut with one expiry and will be available on Deribit as of 27 March 2023. Additionally, the exchange has plans to launch additional expiries in the coming months.

“DVOL can indicate changes in the health and direction of the Bitcoin

Bitcoin

While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that

While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term market, making it an essential tool for traders looking to stay ahead of the curve and a great baseline for volatility trading,” said the CEO of Deribit, John Jansen.

Deribit is among the top cryptocurrency derivatives exchanges, which handled more than $1.4 billion worth of derivatives contracts in the last 24 hours, according to Coinmarketcap. When it comes to cryptocurrency options, the platform dominates, capturing most of the Bitcoin and Ether options markets. It also offers cryptocurrency futures instruments.

“BTC DVOL futures are an exciting new product that will help traders to hedge their positions and take advantage of market volatility while also serving as a tool for additional risk management, alpha generation, and portfolio diversification,” Jansen added. “This product is particularly useful for those who want exposure to volatility but do not want to trade complex options strategies.”

Timing the Market

Deribit is launching the new product when the cryptocurrency market has gained a strong upward momentum following a crisis in the American banking industry. Moreover, two US banks, Signature Bank and Silicon Valley Bankwent under Federal Deposit Insurance Corporation receivership, while another, Silvergate Bankdeclared voluntary liquidation.

Bitcoin gained about 36 percent in the last seven days and is trading above $27,000 as of press time. Other major cryptocurrencies, including Ether, BNB, Polygon, and many others, also gained similarly in the recent bull run.

“Having DVOL futures available makes running a portfolio of BTC options even more manageable,” said Greg Magadini, the Director of Derivatives at Amberdata.

“Just like traditional PMs will sell an S&P500 future to hedge their stock holdings, Deribit traders can now granularly manage their Vega exposure by trading a liquid DVOL future against their option book. Speculators can also have clean Vega bets by trading DVOL futures while avoiding the complexities of path dependency.”

Deribit, a major crypto options trading platformwill launch futures contracts to facilitate Bitcoin volatility trading, the exchange announced. It will be the first such crypto derivatives instrument in the market and will be priced, margined, and settled in USDC.

The BTC DVOL futures will be based on the Deribit Bitcoin Volatility Index (DVOL), a parameter that measures the volatility of the cryptocurrency across markets. It is calculated by implied volatility

Volatility

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders

In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders
Read this Term with a selection of option expiries and strikes on Deribit and provides a 30-day outlook on the expectation of annualized volatility.

The new contract will debut with one expiry and will be available on Deribit as of 27 March 2023. Additionally, the exchange has plans to launch additional expiries in the coming months.

“DVOL can indicate changes in the health and direction of the Bitcoin

Bitcoin

While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that

While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term market, making it an essential tool for traders looking to stay ahead of the curve and a great baseline for volatility trading,” said the CEO of Deribit, John Jansen.

Deribit is among the top cryptocurrency derivatives exchanges, which handled more than $1.4 billion worth of derivatives contracts in the last 24 hours, according to Coinmarketcap. When it comes to cryptocurrency options, the platform dominates, capturing most of the Bitcoin and Ether options markets. It also offers cryptocurrency futures instruments.

“BTC DVOL futures are an exciting new product that will help traders to hedge their positions and take advantage of market volatility while also serving as a tool for additional risk management, alpha generation, and portfolio diversification,” Jansen added. “This product is particularly useful for those who want exposure to volatility but do not want to trade complex options strategies.”

Timing the Market

Deribit is launching the new product when the cryptocurrency market has gained a strong upward momentum following a crisis in the American banking industry. Moreover, two US banks, Signature Bank and Silicon Valley Bankwent under Federal Deposit Insurance Corporation receivership, while another, Silvergate Bankdeclared voluntary liquidation.

Bitcoin gained about 36 percent in the last seven days and is trading above $27,000 as of press time. Other major cryptocurrencies, including Ether, BNB, Polygon, and many others, also gained similarly in the recent bull run.

“Having DVOL futures available makes running a portfolio of BTC options even more manageable,” said Greg Magadini, the Director of Derivatives at Amberdata.

“Just like traditional PMs will sell an S&P500 future to hedge their stock holdings, Deribit traders can now granularly manage their Vega exposure by trading a liquid DVOL future against their option book. Speculators can also have clean Vega bets by trading DVOL futures while avoiding the complexities of path dependency.”





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