Trading crypto options on the OKX Liquid Marketplace

With OKX Liquid Marketplace, crypto options trading is reaching a new level.

1. The challenges of crypto options trading

The market infrastructure for crypto options trading is relatively new and is still evolving. Up until recently, traders were still often facing some significant risks, such as:

  • Liquidity issues - Only certain coins and exchanged listed strikes and expiries are quoted on exchanges. This can result in wide bid/ask spreads and limit the choices to express a view or hedge a risk.
  • Counterparty risk - Options are contracts between two parties so they come with a risk that the trading counterparty won't deliver.
  • Liquidation risk - Options can reduce but also increase exposure to market movements, sometimes in a big way. Traders who don't manage their capital efficiently properly and trade on margin can get liquidated.

2. Why trade options on the OKX Liquid Marketplace?

Our on-demand liquidity network, Liquid Marketplace, offers a powerful solution to these problems. It provides traders with access to deep liquidity, through an execution layer that automates trades and settlements instantly and off the order book. For options trading in particular, it offers:

Centralized infrastructure

  • Liquid Marketplace facilitates institutional participation through automated, anonymous RFQs with guaranteed settlement against KYC'd counterparties.

Risk management

  • Our risk management tools allow you to manage your risk all in one spot – and to avoid the extra counterparty or operational risks of having to move funds around.
  • Pick structures using our position builder, manage risk or try synthetic strategies to better model and visualise your risk.

Efficient execution

  • Our execution tool offers an aligned, no conflict workflow for bulk orders or complex multi-leg trades.
  • Our atomic trades tool requires all legs to be set for the trade to be confirmed, which minimizes risk.
  • Our state of the art Portfolio Margin tool aims for maximal capital efficiency at all times.

Deep liquidity

  • Our large and consistent Delta-1 volumes for many years have proven our ability to perform in the trickiest of markets. This now includes crypto options.
  • At the moment, traders can use coin-margined options for funding. Soon, they will be able to also use USDC for funding.

3. Why OKX?

Institutions choose OKX because, in the whole of crypto's market microstructure, there's no equivalent combination of:

  • Transparency - Our proof of solvency audit covers our reserves and our liabilities, not by way of a third party but thanks to a cryptographic proof any customer can test for themselves, either with our own open source tool or through any other software of their choice.
  • Powerful products - We've developed the most powerful suite of trading tools available in the market, across Spot, D1, Options, Liquid Market Place, and Portfolio Margining.
  • Liquidity - Our strong and stable derivatives volume are due to the effort we put into offering fair market access for all. We don't trade against our clients and we offer a conflict trade canvas.
  • Track record - We have had zero exposure to crypto's recent negative events. We've focused, instead, on quietly building the best tech in crypto.

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THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO PROVIDE ANY INVESTMENT, TAX, OR LEGAL ADVICE, NOR SHOULD IT BE CONSIDERED AN OFFER TO PURCHASE, SELL, OR HOLD DIGITAL ASSETS. DIGITAL ASSETS, INCLUDING STABLECOINS, INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY, AND CAN EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL ASSETS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

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