Traders buy cryptocurrency oil futures with record volatility

Binance’s own crypto exchange, FTX introduced oil futures after the recent record drop in oil prices in the United Statesthat fell up to $ 40 on April 20.

FTX contracts expire at the West Texas Intermediate spot priceor WTI plus $ 100 to protect against negative clearance prices.

The exchange notes that “FTX OIL contracts” can theoretically expire negatively if the spot price for oil falls below minus USD 100.

FTX starts crypto-based oil contract trading

Traders buy cryptocurrency oil futures with record volatility
Traders buy cryptocurrency oil futures with record volatility

FTX comprises a first-class Bitcoin (BTC) futures exchange in terms of volume and open interest. Binance’s stock exchange is the largest offering of crypto-based oil contracts.

The contracts are not available to account holders who are resident or have an IP address in the United States, Canada or at a number of other detailed locations.

Oil volatility overshadows that of cryptocurrencies

Although cryptocurrencies are known for their volatility, they have faded compared to the price fluctuations recorded by the WTI since March.

The volatility of oil, bitcoin and gold

Oil volatility, Bitcoin and gold: Woobull

The contracts are negotiated until they are processed, although they are settled after the expiry date.

The derivatives volume will increase in 2020

A record trading volume was recorded in the crypto derivatives area in the first quarter of 2020, driven by the new entrants Binance and FTX.

A report published by CryptoCompare earlier this month estimated that Binance’s and FTX’s combined market share increased from 14% in January to 22% in March due to the dramatic crash in the crypto market..

Binance saw the highest volume of futures exchanges with $ 2.8 billion in futures that changed hands during the violent sale.

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