BitMEX Introduces XRP Swaps, Delists Two Ripple Derivatives Contracts

BitMex
When the crypto market was still at its infancy around half a decade ago, derivative trading in crypto seemed like a distant dream. However, crypto exchanges like BitMEX have made it possible, and in a new development, the exchange announced significant changes to its crypto derivative offerings. The company announced that it is going to launch a new XRP-US Dollar quanto swap, which is meant for the growing crypto derivatives market.

Key Features

It goes without saying that this is a significant development for this niche corner of the crypto space. In addition to that, it will be interesting to see whether it has any significant effect on the price of XRP. On the other hand, BitMEX UP and DOWN contracts have been delisted. A quanto swap is a novel derivative trading instrument by way of which a trader pays the counterparty in the form of an overseas interest rate. Once the expiration date is reached, either of the two parties can settle their liabilities in cash. However, it is important to note that the interest rates are determined in advance. The fact that BitMEX brought this instrument to its platform is a clear indication that the crypto space is maturing at a rapid rate. On top of that, it also proves that plenty of seasoned and skilled traders now ply their trade in the leading exchanges. >> Bank of England is Planning to Adopt Digital Currency In addition to that, this sort of a derivative instrument is used by traders who are looking for higher liquidity and results in the overall well-being of the market. Traders will also be able to post their margins in their local currencies, making it far more convenient. In other words, traders do not need to worry about foreign exchange fluctuations when they are trading one of these XRP-US Dollar quanto swaps on BitMEX. It remains to be seen how the traders on the exchange react to the latest offering. Featured image: DepositPhotos © Violka08

If You Liked This Article Click To Share

Sponsored Crypto Content